FUNDAMENTAL OVERVIEW The risk premium that traders had started pricing in after reports of potential US strikes on Iran before the midterm elections, is being unwound after yesterday’s de-escalation. In fact, Trump said on Truth Social that the US was having productive discussions with Tehran and would not attack Iran before the midterm elections.This was a good example of how markets work. They price and reprice future expectations based on the incoming information. The escalation risks triggered a strong rally in crude oil on expected retaliations and disruptions, while the de-escalation reversed the earlier expectations and traders unwound their hedges or speculative longs. Looking ahead, Iranian Foreign Minister Araghchi said yesterday that Tehran was reviewing Washington's response to Iran's proposal and expected to reply within the next few days. A positive outcome would lead to a major selloff in oil prices on expected supply improvement, while a negative outcome wouldn’t change much at this point, although it would likely limit the downside in crude. CRUDE OIL TECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we can see that crude oil(CFD contract) is pulling back a bit after the de-escalation in tensions following Trump’s post. If the price pulls all the way back to the lower bound of the channel, we can expect the buyers to step in again, with a defined risk below the channel, to keep targeting the 110.00 resistance. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 68.00 support next, with the 80.00 level as the first target.CRUDE OIL TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see that the break of the downward trendline opened the door for a rally into the 96.77 level. If the price gets there, we can expect the sellers to step in, with a defined risk above the level, to position for a drop back into the lower bound of the channel. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 110.00 resistance next.CRUDE OIL TECHNICAL ANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, we can see the price broke below the minor upward trendline after Trump’s post as traders started to unwind the earlier escalation premium. We have another trendline around the 89.50 level that could act as support. The buyers will likely step in there too, with a defined risk below the lower bound of the channel, to keep pushing into the 96.77 level. The sellers, on the other hand, will need to wait for a break below the channel to open the door for new lows. The red lines define the average daily range for today. UPCOMING CATALYSTSTodaywe conclude the week with the University of Michigan Consumer Sentiment survey, although it’s not expected to be a market-moving release. The focus will remain on US-Iran developments. This article was written by Giuseppe Dellamotta at investinglive.com.