- As you can see, Friday was a very explosive day, and you would expect that as Israel has launched military operations against Iran.
- This had the oil markets just skyrocketing. And at one point it looked like we were going to hit $70. This was pretty quick on the reaction.
- The hourly chart certainly shows just how explosive the markets had been.
In fact, after this was announced, the market gained about $5 in just a single hour. We continued to go higher, gaining another roughly $4 and have cents pulled back. That’s not a huge surprise because sooner or later you run out of people willing to sell unless they’re collecting profit. The $72.50 level is an area that previously has been both support and resistance, most recently resistance, and the fact that we are closing below there does suggest that we need a pullback.
There Will Be Problems
The biggest issue going into the weekend was the potential for headline-driven chaos—and while that risk hasn’t fully dissipated, markets have so far opened with a measured tone. I still view this as a market where pullbacks offer buying opportunities, although a deeper correction remains possible. Friday’s surge was a highly reactive move that occurred during a relatively thin trading window—if memory serves, just before the Tokyo open—one of the least liquid times of the day. That may have amplified the spike.
Volume during Friday’s session was certainly strong, but now it’s time to drill down into shorter timeframes to identify potential entry points. If you’re looking to go long, Monday’s open provides more clarity than pre-weekend uncertainty did. That said, headline risks remain elevated, and traders should remain flexible in case fresh developments spark renewed volatility.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
