US and Iran Sign Memorandum of Understanding, $300 Billion Fund to Be Established

Although the news points to a reduction in geopolitical risks, the creation of a $300 billion fund could create uncertainty in the market. Technical indicators are in oversold territory (RSI at 30.8), suggesting potential for a short-term recovery. The MACD is in negative territory but approaching the signal line, indicating weakening momentum. While the price trading below the 20- and 50-day moving averages confirms a downtrend, oversold conditions and optimism from the news could support a short-term rise. However, uncertainties regarding the details and feasibility of the agreement pose a risk that the upside may remain limited.

A memorandum of understanding has been signed between the US and Iran, establishing a $300 billion fund. This development strengthens expectations that sanctions on Iran may be eased, potentially increasing Iran's oil supply. Technical indicators support a bearish trend: RSI at 31.6 is near oversold territory but has not yet signaled a recovery, MACD is below zero and below its signal line, and the price is below both the 20-day and 50-day moving averages. A sharp 5.6% decline in the last 24 hours indicates the market is pricing in expectations of increased supply. The downtrend is likely to continue in the short term, though a technical correction is possible due to oversold conditions.

The news reports that a memorandum of understanding has been signed between the US and Iran, and a $300 billion fund will be established. This development could mean a reduction in geopolitical risks and a easing of concerns over energy supply. However, XOM stock has fallen 6.5% in the last 24 hours, and its RSI has entered oversold territory at 26. Although the MACD is negative and below the signal line, oversold conditions and positive news could trigger a short-term recovery. Nevertheless, given the strong downtrend, the upside movement may be limited.

The news signals a reduction in geopolitical risks and a potential investment inflow into the energy sector. CVX stock has declined 5.6% in the last 24 hours, with its RSI entering oversold territory at 28.7. This technical oversold condition, combined with the positive news, could signal a short-term recovery. However, the MACD remains negative and below the signal line, suggesting that any upside may be limited. If the stock can sustain above the $180 level in the short term, a move toward the $185-$187 resistance levels could be expected.