Citadel Securities: Markets Not Pricing in Iran Deal Signals

The news indicates that signals regarding the Iran deal have not been priced into the market. This could create downward pressure on oil prices due to expectations of increased supply. Technical indicators also point to weakness: RSI is at 40, MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. A continuation of the short-term downtrend is likely.

WTI crude oil is trading at $89.78, below both the 20-day SMA ($90.60) and the 50-day SMA ($91.36), indicating short-term weakness. The RSI at 42.6 is below the neutral zone, suggesting bearish momentum. The MACD line is below the signal line and in negative territory, confirming continued selling pressure. News headlines indicate that markets are not pricing in the possibility of an Iran deal; if signals of a deal strengthen, additional pressure on oil prices could emerge due to expectations of increased supply. The short-term downtrend is likely to persist.

The news indicates that the market has not yet priced in signals of an Iran deal. This could create expectations of increased oil supply, putting downward pressure on energy stocks such as XOM. Technical indicators also confirm weakness: the RSI is approaching oversold territory at 32.8, while the MACD is below zero and below its signal line. The price is trading below both the 20-day and 50-day moving averages. Selling pressure is likely to persist in the short term.

CVX shares have lost 4% in the last 24 hours, falling to 183.40. While the RSI at 36.9 approaches oversold territory, the MACD line remains below the signal line in negative territory. Trading below the 20-day SMA (185.16) and 50-day SMA (190.16) indicates short-term weakness. The headline notes that markets have not priced in signals of an Iran deal, which could create downside risk for oil prices and negatively impact energy stocks like CVX. The short-term downtrend is likely to continue.