Goldman Sachs: Hormuz Oil Flow May Remain Permanently Low

Goldman Sachs' statement that the Hormuz oil flow could remain permanently low may create uncertainty in the energy sector and put pressure on GS's energy arm. Technically, while the RSI is in neutral territory at 57.9, the MACD remains below the signal line, indicating short-term weakness. Although the stock rose 3.07% in the last 24 hours, profit-taking may follow this news. While being above SMA20 and SMA50 supports the medium-term trend, the short-term impact of the news may lead to a bearish bias.

Goldman Sachs' statement that oil flows through the Strait of Hormuz could remain permanently lower has heightened supply concerns, but in the short term, it is creating uncertainty rather than pushing prices higher. Technical indicators already present a weak outlook, with the RSI approaching oversold territory at 34, while the MACD remains below the signal line and in negative territory. The price is trading below the 20- and 50-day moving averages and has lost 1.5% in the last 24 hours. Therefore, given the negative perception of the news combined with the existing technical weakness, a continued bearish trend can be expected in the short term.

News that oil flows through the Strait of Hormuz could remain persistently low has heightened supply concerns, potentially pushing oil prices higher. However, technical indicators remain weak: the RSI is near oversold territory at 32, the MACD is below its signal line, and prices are trading below both the 20-day and 50-day moving averages. While this news serves as a positive catalyst in the short term, it may not be sufficient to break the current downtrend. Therefore, only a limited upside is expected.

The news points to a potential increase in oil supply, creating a negative catalyst for Exxon Mobil (XOM). Technical indicators support this view: although the RSI at 34 is approaching oversold territory, momentum remains weak. The MACD line is below the signal line and in negative territory, and the price is trading below both the 20-day and 50-day moving averages. The 4.5% decline in the last 24 hours indicates continued selling pressure. In the short term, the downtrend is expected to persist, though some buying on the dip may occur due to oversold conditions.