Oil Reaches $90, US Strikes Iran on Ninth Day, Stocks Rise

Although the news headline indicates that oil prices have reached $90, technical indicators point to a short-term bearish trend. The RSI is at 39, not yet approaching oversold territory, but the price trading below the 20-day moving average (89.01) suggests weakness. The MACD line is below the signal line and moving into negative territory, confirming diminishing momentum. Geopolitical tensions may support prices in the short term, but the deterioration in the technical structure increases the likelihood of a pullback toward the 50-day moving average (86.64). Therefore, a bearish movement can be expected in the near term.

Although the news headline suggests oil has reached $90, the current price stands at $79.90, indicating the report may be outdated or exaggerated. The RSI at 37.47 is near oversold territory but has yet to signal a rebound. The MACD line remains below the signal line and in negative territory, pointing to sustained short-term bearish momentum. Price is trading below both the 20-day ($82.42) and 50-day ($80.56) moving averages, presenting a technically weak outlook. Therefore, the downtrend is expected to persist in the near term.

The rise in oil prices to $90 and geopolitical tensions could positively impact energy stocks such as BP. Technical indicators also support this view: the RSI at 68 is approaching overbought territory but is not yet extreme, the MACD remains above its signal line with positive momentum, and the price is trading above its 20- and 50-day moving averages, indicating a continued short-term uptrend. However, the elevated RSI level and the risk of a potential correction following the rapid rise in oil prices mean the outlook is not entirely risk-free.

The rise in oil prices to $90 and ongoing geopolitical tensions could positively impact energy stocks such as CVX. Technical indicators also point to a strong upward trend: although the RSI at 74 is approaching overbought territory, momentum continues, the MACD is above its signal line, and the stock is trading above both the SMA20 and SMA50. The 3.1% increase over the last 24 hours suggests that the upward movement may persist in the short term. However, the elevated RSI level also brings the risk of a short-term correction.