Scorching Oil Rally: Charting the Next Move

The price of U.S. oil has surged dramatically over the past two months, highlighted by a 7% spike due to escalating U.S.-Iran tensions. This upward trend has created a notable gap in the price chart, which technical analysts see as pivotal in determining future market directions.

U.S. oil prices have been on a spectacular rally over the past two months, driven by escalating tensions between the U.S. and Iran. Thursday saw a significant 7% jump, spotlighting a key chart gap that could decide the next market move.

Since hitting a low of $67.04 on July 2, West Texas Intermediate, the benchmark for U.S. crude, has shot up by more than 53%, according to LSEG data. This spike highlights a price chart gap from mid-May, a crucial point that analysts believe will guide future price direction.

If the market fills this gap, the next targets lie in the $111-$113 zone, marked by historical price congestion. Conversely, a drop below $102-$100 could indicate a downward trend, with $93.50 being the next potential level to watch.