Bank of America says oil’s Bermuda triangle is nearing an end

Oil surged in the hours following the news yesterday:

• Hamas leader Ismail Haniyeh was killed in Tehran
• Hamas says that the assassination of Ismail Haniyeh is a dangerous escalation

Eyes are on the Middle East in the wake of this news, and oil gained ground.

Separately, a report from Bank of America says:

• “Oil prices have been trading in a narrowing range, or a triangle pattern, for over a year now,”
• “When it becomes too tight and what’s holding it lets go, a sharp and sudden breakout trend occurs,”
• “This becomes increasingly likely after five or more swings within the triangle occur. Our weekly chart of Brent oil prices labels five swings … Another tendency is for price to break out from the triangle 61.8-76.4 percent of the way through it, which we estimate to be in August-October of 2024,”
• The report stated that a weekly close in Brent below $78 would look like a bearish triangle breakdown.

RigZone have the piece, link here

This article was written by Eamonn Sheridan at www.forexlive.com.