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Brent rises as Strait of Hormuz closure boosts Middle East supply fears
Brent closed above the 200-day moving average at $78.5 and the $80 level, while markets now eye $88.9 and $90 as next resistance zones.
Brent crude rose for a second straight day as tensions between the US and Iran escalated, with the Strait of Hormuz reportedly closed. The development has renewed concern about longer-running supply disruptions that could further pressure already weakened western economies, Action Forex reported.
The price push lifted Brent to new highs for more than a month, and the market showed no clear signs of fatigue so far, according to the outlet. The technical setup strengthened as Brent broke and closed above the 200-day moving average at $78.53, and it also reclaimed the psychological $80 level.
Action Forex also pointed to key nearby resistance levels at $88.87 and $90, where bulls would want to see a break to confirm a reversal pattern. It noted that partial profit taking could emerge as price approaches the $90 zone, but dips may be limited if support around the $82 area holds.
The analysis said a 5-day over 200-day golden cross and a 10-day over 20-day bull cross support near-term strength. It added that any corrective move should stay contained above $82.00 to keep bullish re-entry levels intact.
Latest closeWTI crude $78.04 ▲9.3%|Brent $83.15 ▲9.4%