US Military Conducts Airstrikes on Iran

The news headline signals a sudden increase in geopolitical risks, which typically drives oil prices higher. Technical indicators present a neutral picture: the RSI at 52 is neither overbought nor oversold, while the MACD is below zero but close to its signal line. The price sits just above the 20- and 50-day moving averages, forming a short-term support zone. However, the 1.8% decline in the last close may indicate that investors have not immediately reacted to the news. A short-term upward move is possible, but confidence is moderate as the market may be awaiting further confirmation.

The news headline signals a sudden increase in geopolitical risks, which typically drives oil prices higher. Technical indicators present a neutral picture: the RSI at 54 is neither overbought nor oversold, while the MACD is below zero but approaching its signal line. The price sits just above the 20- and 50-day moving averages, which could provide short-term support. However, the 1.5% decline over the past 24 hours may indicate that the market has not yet fully reacted to the news. A short-term upward move is possible, but caution is warranted given the uncertainty surrounding the scale and duration of the conflict.

The news could increase geopolitical risks, leading to volatility in oil prices and putting short-term pressure on energy stocks such as XOM. Technical indicators already present a weak outlook: the RSI is near the oversold zone at 41, the MACD is below zero, and although it is above the signal line, momentum remains negative. The price is trading below both the 20-day and 50-day moving averages, confirming a downtrend. The 2.6% decline in the last 24 hours indicates increasing selling pressure. However, since the likelihood of geopolitical developments directly affecting oil supply is low, I believe the downside may be limited.

Rising geopolitical tensions could create short-term selling pressure on energy stocks. CVX shares have fallen 2.96% in the last 24 hours, with the RSI dropping to 40, indicating weak momentum. The MACD line remains below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, further weakening the technical outlook. The uncertainty generated by the news may support a bearish trend over the next 1-3 days.