21 Aug

The crude oil finds stability amidst price recovery

August 21, 2023

By RoboForex Analytical Department

The commodity market has stabilised as the new week begins. The price of a barrel of Brent is hovering around 85.40 USD.

The price recovery is observed for the third consecutive day. Market expectations are tied to China: there are reasons to believe that the Chinese authorities will implement additional measures in their stimulus-driven economic policy.

Meanwhile, market players continue to exercise caution. The Federal Reserve System recently announced its readiness to continue tightening its monetary policy to combat inflation. At the same time, the economic outlook for China remains uncertain.

Technical analysis of Spot Brent Crude Oil:

On the H4 Brent chart, the price has rebounded from the support level and is now developing an ascending wave to 88.50. This is a local target. After the price reaches it, a link of declining correction to 85.75 might follow (with a test from above). Next thing, a rise to 94.50 could be expected. Technically, this scenario is confirmed by the MACD, whose signal line has left the histogram area and is aimed strictly upwards.

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On the H1 Brent chart, a structure of an impulse to rise to 85.30 has formed. Today a narrow consolidation range is expected to develop below it. An escape from the range upwards might facilitate the development of a wave to 86.66, from where the trend could continue to 88.50. Technically, this scenario is confirmed by the Stochastic oscillator with the signal line under 80, ready to renew the highs.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.


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