WTI Oil outlook: Brent oil price falls 10% as Iran opens Hormuz Strait

Slobodan Drvenica Windsor Brokers

Crude oil prices were sharply down on Friday on announcement from Iranian government that the Strait of Hormuz was open for all commercial vessels.

Brent crude price fell around 10% immediately after the announcement in early US session, hitting the lowest in five weeks, in the biggest daily drop since March 23.

Fresh drop in oil prices further weakened near-term structure, following surge through ascending and thickening daily cloud, accompanied with formation of daily Tenkan/Kijun-sen bear-cross and strengthening negative momentum.

Bears also broke psychological $90 level and dented important Fibo support at $89.09 (50% retracement of $58.70/$119.47 rally) with weekly close below these levels to confirm bearish signal.

The latest news further boosted hopes for potential end of the war that put fire in entire region of the Middle East and sent shockwaves through the world.

Brent crude contract is on track for the second consecutive massive weekly loss that also to improved sentiment.

Immediate target lays at $86.54 (55DMA), followed by $81.91 (Fibo 61.8%) and $80.00 (psychological).

Broken cloud base ($89.61) and $90 (psychological) revert to resistances.

Res: 89.09; 90.00; 93.32; 94.30

Sup: 86.54; 83.16; 81.91; 80.00

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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