Oil prices continue to eat into the Monday drop as market optimism dwindles

The roller coaster ride continues as today we are starting to see some fading optimism in markets. That as there continues to be mixed messages on negotiations and talks of a potential deal between the US and Iran. There’s absolutely no coherence to the communication from both sides and it looks like that is starting to take a toll on risk sentiment.Oil prices are starting to creep back higher with WTI crude now looking to recapture a more bullish near-term bias:We’re seeing price climb up by nearly 4% to $93.70 and that already more than covers the halfway point of the drop from the Monday peak. The 200-hour moving average (blue line) is lined up next at $94.32 currently. Break above that and buyers will see the near-term bias shift to being more bullish again.At the same time, we’re also seeing Brent crude jump towards $106 as the recovery mood continues in the oil market. That as traders sense that there might not be any immediate major changes to the Strait of Hormuz situation.In other markets, US futures are also settling lower with S&P 500 futures down 0.6% on the day now. As mentioned earlier, sentiment is hanging by a thread and this will continue to put a lot of scrutiny on the technical side of things this week. This chart will be one to watch as tech shares could really stumble further on a firmer break, this time without Trump to come to the rescue:Besides that, we’re seeing 10-year Treasury yields also climb higher again to 4.38% – now just 6 bps down from the Monday highs. Meanwhile, precious metals are also suffering again with gold down nearly 2% to $4,429 and silver down over 4% to $68.05 on the day.The broader market action shows that we’re running it all back again as the optimism towards peace begins to dwindle on the week.
This article was written by Justin Low at investinglive.com.

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