Strait of Hormuz Risks to Be Tested in April Inflation

Risks in the Strait of Hormuz are creating uncertainty ahead of inflation data. Technically, while the RSI at 62 is approaching overbought territory, the MACD maintains a buy signal. The price is trading above both the 20-day and 50-day moving averages. However, inflation data and geopolitical risks make it difficult to clarify the short-term direction. Therefore, maintaining a neutral stance appears more appropriate.

Brent crude fell 2.8% in the last session to $110.45, trading below its 20-day moving average of $112.58. While the RSI at 38.6 approaches oversold territory, the MACD line remaining below the signal line confirms weak short-term momentum. The headline notes that Strait of Hormuz risks will be tested against inflation data, suggesting geopolitical tensions may already be priced in and investors will focus on fundamental data. The weakness in technical indicators and the uncertainty created by the news support a bearish trend in the short term. However, the low RSI level keeps the possibility of a sudden rebound alive.

WTI crude oil fell 2.97% over the past 24 hours to $102.14, with technical indicators pointing to weakening momentum. Although the RSI at 39.6 is approaching oversold territory, the MACD line remaining below the signal line and trading below both the 20-day and 50-day moving averages confirm short-term pressure. The headline notes that Strait of Hormuz risks will be tested against April inflation data; while this suggests geopolitical tensions could potentially push prices higher, inflation concerns and possible demand slowdown may increase selling pressure. A continued downtrend is likely in the near term, but the low RSI level could open the door for a sudden rebound buying.

CVX stock is trading in a technically neutral zone. The RSI at 57.6 indicates neither overbought nor oversold conditions, while the MACD shows weak positive momentum just above the signal line. Although the price has managed to stay above the 20- and 50-day moving averages, it has experienced a slight decline over the past 24 hours. The headline notes that Strait of Hormuz risks will be tested against April inflation data, which could create uncertainty for oil prices. In the short term, investors are expected to remain cautious ahead of the inflation data, with the price likely to fluctuate around current levels.