Oil Prices Edge Higher Following a Brief Consolidation Phase
Oil prices regained momentum on Friday, climbing more than 1.5% during the European session after spending the previous two days in a period of subdued trading.
The formation of consecutive Doji candles on Wednesday and Thursday reflected market indecision, as traders paused following the latest rally and awaited fresh directional catalysts.
Renewed tensions between the United States and Iran have once again disrupted traffic through the Strait of Hormuz, fueling concerns over a broader geopolitical crisis. Market anxiety intensified after Iran warned it could restrict access to the Red Sea if the U.S. were to target its strategic infrastructure, raising the risk of significant disruptions to global energy flows and supply chains.
Despite Friday’s advance, oil remains confined within its near-term consolidation range. Attention is centered on the key resistance at $87.37, representing the 38.2% Fibonacci retracement of the $115.26/$70.13 decline, where the recent rally previously stalled.
A decisive break above this barrier would reinforce the bullish recovery from the $70.13 low and open the way toward $90.00, a major psychological level reinforced by the 55-day moving average, followed by $92.69 (50% Fibonacci retracement) and $93.71 (100-day moving average).
The bullish outlook continues to be supported by strong positive momentum on the daily chart, along with several bullish moving-average crossovers, including the 10/20, 10/30, and 10/200 DMA combinations.
On the downside, the recent range floor at $83.32 remains a solid support level and is expected to underpin prices, helping to preserve the broader bullish structure.
Res: 87.37; 88.00; 90.00; 91.28
Sup: 83.32; 82.39; 80.00; 79.00
