FX.co ★ XEvils-Ash | CL/Crude Oil

As traders responded to the relatively antagonistic headlines following the negotiations between the United States and Iran in Switzerland, the light sweet crude oil market immediately surged. However, since then, Iran has been open to the idea of nuclear inspectors, which is a significant step in the right direction. If everything else is equal, this market dropped very instantly, and we are currently lower than we were on Friday. I believe that crude oil is currently attempting to price in the concept of peace, and we have nearly completely recovered from the war itself. All of those profits could be wiped away if the market drops to $67, and I do believe that will happen someday. I understand that there are still some supply chain issues with crude oil, so I would anticipate some resilience, but whether or not we fall lower than that is, in my opinion, a very different topic. The 4-hour chart shows WTI crude oil around $73.70, with bullish rebound candles guarding the 0.236 Fibonacci retracement close to $77.69 following a decline below the blue falling channel. A sequence of higher lows off the $72.79 swing low and bullish rejection wicks show buyer absorption at support. Neutral market momentum is indicated by an RSI of about 48. According to the volume profile, the primary pivot cluster is between $77 and $80. Resistance is still being provided by the 50-period moving average at $80.76. Overall, as the price explores the lower edge of the wider downtrend channel, the market structure is neutral to bullish above $77.69. A probable stabilization is indicated by the Fibonacci confluences and the emerging higher lows.