Geopolitical risks stacking with strong technicals, oil prices aiming for $85

From a technical perspective, on the 4-hour chart, the price has stabilized above the middle band of the Bollinger Bands, with the MACD showing a bullish crossover and divergence, indicating strong bullish momentum. The resistance level above is at $85.42.

Recently, tensions in the Strait of Hormuz have remained high, significantly increasing shipping safety risks, which provides a strong geopolitical premium for oil prices. The upcoming EIA crude oil inventory data tonight is expected to decline sharply. If inventories decrease more than expected, it will further reinforce the tightening supply logic and push oil prices to test the resistance level above. Conversely, if inventories unexpectedly increase, it could trigger a short-term correction.

Overall, under the resonance of geopolitical risks and technical signals, oil prices are trending stronger. Attention should be paid to tonight’s data for potential market catalysts.

Suggestions:
Intraday, consider accumulating in batches around $80-$81.5, with targets at $83.5 and $85.

Disclaimer: The above analysis is for reference only and does not constitute investment advice. Trade at your own risk.