Oil Prices Jump as US and Iran Tensions Reignite Supply Fears | Investing.com

Fundamental Analysis

After a sharp multi-day slide, crude oil reversed hard on Wednesday. climbed more than 4% to near $88 a barrel, clawing back some of its decline over the prior three sessions as the US military said it had intercepted an Iranian attempted surprise attack on American troops stationed in the Middle East, reigniting tensions after several days of relative calm.

In the US market, notched a third straight winning day Tuesday, climbing over 500 points as a rotation out of chips into other sectors lifted the blue-chip average, while the edged up 0.2% and the slipped 0.2% its fifth consecutive down session, weighed down by chips even as the broader market found footing. Additionally, Apple (NASDAQ:) briefly became the second publicly traded company in history to cross a $5 trillion market capitalization, with shares touching an intraday high near $342.89 on Tuesday. Wednesday’s session opened choppy, with futures fluctuating after the Iran news drove oil higher and revived inflation concerns just ahead of the Fed decision.

The semiconductor unwind deepened again on Wednesday. Asian tech stocks extended their sell-off, led by South Korea’s SK Hynix (NASDAQ:), which slid more than 15% after missing analyst estimates despite posting record quarterly profit. Samsung Electronics lost over 8%. Nvidia (NASDAQ:) closed roughly flat after opening lower, Intel (NASDAQ:) dropped nearly 6%, AMD (NASDAQ:) lost 8%, and memory names Micron (NASDAQ:), Seagate, Western Digital and Sandisk all fell sharply.

All eyes are now on the Federal Reserve meeting today. traders are pricing in a nearly 70% likelihood the Fed holds rates steady at the current 3.5%–3.75% target range, though markets are also pricing in roughly an 80% probability of a hike in September.

In the commodities market, gold slipped about 1% to around $4,030 an ounce as a stronger and Fed-decision uncertainty weighed on the precious metal, with the dollar hovering near a four-week high.

Technical Analysis

Dow Jones Technical Analysis

The Dow Jones continues to trade within a constructive short-term uptrend after recovering from the 51,575 low and pushing back toward the recent high at 52,969. Price remains above the 20-hour moving average, while the 5-hour moving average has crossed back above the 10-hour moving average, indicating that bullish momentum is gradually strengthening after a brief consolidation. The pullback from the recent peak has been relatively shallow, suggesting buyers remain in control.

Immediate resistance is located at 52,970, followed by the psychological 53,100 area. Initial support is seen at 52,685, with stronger support around 52,270, where the 20-hour moving average is currently positioned. A sustained break above 52,970 would confirm bullish continuation and expose fresh record highs, while a move below 52,685 could trigger a deeper correction toward 52,270.

Source: STARTRADER app | Dow Jones advances higher as investors rotate away from AI stocks

Gold Technical Analysis

has staged a modest rebound after holding above the $4,010 support area. Price has moved back above the 5-hour, 10-hour and 20-hour moving averages, with the shorter-term averages turning higher, indicating improving near-term momentum. However, the broader structure still reflects a series of lower highs from the 4,166 peak, meaning confirmation above resistance is required before a stronger bullish reversal can be established.

Immediate resistance is located at 4,045, followed by 4,088. Initial support is seen at 4,030, with stronger support around 4,010. A decisive break above 4,045 would reinforce the recovery and target 4,088, while a move below 4,030 would weaken the bullish outlook and increase the risk of another test of 4,010.

Brent Technical Analysis

Brent crude is attempting to recover after rebounding from the recent low at $82.79, with prices climbing back above both the 5-hour and 10-hour moving averages. The short-term recovery remains intact; however, the 20-hour moving average continues to slope lower, indicating that the broader trend is still bearish despite the recent rebound. Momentum has improved, but price needs a stronger breakout to confirm a reversal.

Immediate resistance is located at $87.70, followed by $90.30. Initial support is found at $85.85, with stronger support at $82.80. A break above 87.70 would strengthen the recovery and open the door toward $90.30, while failure to hold above $85.85 would suggest the rebound is losing momentum and could expose the recent low once again.

Risk Disclaimer: This material is provided for informational purposes only and does not constitute a recommendation or investment advice. Trading financial instruments on margin involves substantial risk and may not be appropriate for all investors.