4 min readThe price of oil has absolutely skyrocketed in response to rising geopolitical tensions in the Middle East, and there are no signs of slowing down. The market has exploded through several major resistance levels, beginning with the long-term high time frame resistance zone at 66, marked as number 1, and continuing straight through the 72 level, marked as number 2.
Price is now testing a descending trendline that has kept oil capped since September 2023. This level is critical. A rejection here would shift focus back to the 72.00 region, which now acts as a breakout zone and potential area for bulls to defend. However, if momentum continues and oil breaks above this descending trendline, the next key resistance to watch is 80.00, marked as number 4, a major level that could act as a magnet for price in the sessions ahead.
Zooming into the 1-hour chart, we see oil printing a structure that resembles an ascending triangle. The horizontal resistance above coincides with the high time frame level around 75.50, and a confirmed breakout through this level would signal strength, potentially initiating a move toward the 80.00 zone.
Failure to break above 75.50 and a move below 73.00 would increase the probability of a short-term correction. In that case, price could retrace further before any new bullish continuation can begin.
The big question now is how oil will respond to the rapidly evolving geopolitical landscape. Tensions in the Middle East continue to drive volatility, and price action around these levels will be key in determining the next major directional move.
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