Iraq and Pakistan Sign Energy Deals with Iran: Tehran Demonstrates Control over Hormuz

GOOGL shares fell 2.3% in the last close, trading at $387.44. The RSI is at 42, indicating weak momentum, while the MACD is below the signal line and in negative territory, suggesting short-term weakness. The price is trading below both the 20-day ($392.26) and 50-day ($391.45) moving averages, further dampening the technical outlook. Although the news headline focuses on energy geopolitics, a direct impact on a tech stock like GOOGL is unlikely; however, it could be considered a factor that may reduce overall market risk appetite. The short-term downtrend is likely to continue.

Although the news emphasizes Iran's control over the Strait of Hormuz, increasing supply risk, technical indicators point to short-term weakness. The RSI is neutral at 47.5 but with a downward bias, the MACD is below the signal line, and the SMA20 (107.23) is trading above the current price (106.35). The 1.88% decline in the last 24 hours indicates negative momentum. Therefore, despite geopolitical risks, the technical picture supports the possibility of a downward correction.

The news highlights Iran's control over the Strait of Hormuz, increasing the risk of supply disruptions. This geopolitical risk could push oil prices higher in the short term. Technically, the RSI is neutral just below 50, while the MACD is below the signal line but near zero, indicating weak momentum. Although the price is below the SMA20, it remains above the SMA50, suggesting medium-term support. However, the impact of the news may be limited, as the implementation of agreements could take time.

The news indicates that Iran has increased its regional influence through energy agreements and consolidated its control over the Strait of Hormuz. This could heighten geopolitical risks to oil supply, potentially driving energy prices higher and benefiting major oil companies like Exxon Mobil in the short term. Technically, the RSI is above 60 and the MACD is trading positively above its signal line, suggesting continued upward momentum. However, as the stock has gained over 3% in the last 24 hours, some profit-taking may occur in the near term. Therefore, the bullish outlook is supported with moderate confidence.