- The market still trades inside a bullish channel started at the end of December 2023, the long-term trend is bullish for the black gold.

- Since beginning of February, and the fourth impact on the lower bound of the bullish channel, the market has accelerated towards the 50% retracement of the sell-off which took place during Q4 2023.
The long-term moving averages have already reversed to the upside long ago, before registering a bullish cross.
The DMI indicator shows an increasing bullish environment within a more and more directional price action.

- Considering all of the above, it is hard to qualify the current situation as bearish or threatening for black gold.
This increased appetite for oil came along rising tensions in the middle east, with bets on disrupted supply chain in the red sea, as well as fears of a widening conflict to other nations such as Iran.

Technically speaking, there is however not much more short-term bullish potential for the market. Prices have already reached a significant resistance level (50% Fibonacci at 81.00$) and now trade close to the upper bound of their bearish channel.
But considering the importance of the geopolitical developments in the price action, no scenario should be off the table, and an acceleration above 81.90$ and the 83.40$/84.00$ zone could still be possible.

Pierre Veyret, Technical Analyst at ActivTrades

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