Strong Dollar and Geopolitical Developments Weigh on Commodity Prices

Brent crude oil fell 3.2% in the last session to $72.60. The RSI is at 40.6, indicating weak momentum, while the MACD remains below the signal line and in negative territory. Trading below the 20- and 50-day moving averages further darkens the technical outlook. A strong dollar and geopolitical pressures could trigger further selling in the near term. However, as the market has not yet entered oversold territory, the likelihood of continued decline remains high.

The US Dollar Index (DXY) is trading at 101.36, posting a slight decline over the past 24 hours. The RSI stands at 51.4, indicating neutral territory, while the MACD remains above its signal line but below zero, suggesting weak bullish momentum. Price action is trapped between the SMA20 (101.31) and SMA50 (101.44), increasing short-term directional uncertainty. Despite headlines emphasizing a strong dollar, technical indicators offer no clear direction. Therefore, a sideways move is expected in the near term.

XOM shares have declined 2.6% in the last 24 hours, falling to $136.40. The RSI at 41.6 is approaching the oversold zone, while the MACD line remains below the signal line in negative territory. Trading below both the 20-day SMA ($136.68) and 50-day SMA ($138.12) indicates short-term weakness. With a strong dollar and geopolitical pressures in the headlines potentially weighing on commodity prices, a possible drop in oil prices could further impact XOM. Given the combination of technical indicators and news flow, the likelihood of continued downside movement over the next 1-3 days is high.

Chevron (CVX) shares closed at $170.93, down 2.96% in the last 24 hours, with technical indicators pointing to weakening momentum. The RSI stands at 40, approaching oversold territory, while the MACD line remains below the signal line in negative territory. Trading below both the 20-day and 50-day moving averages confirms short-term pressure. A strong dollar and geopolitical developments, as highlighted in recent headlines, are weighing on commodity prices, potentially adding further selling pressure on energy sector stocks. Therefore, the downtrend is expected to continue in the near term.