30 Nov

Oil Prices are Correcting, After All

November 30, 2020

Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex

On Monday, November 30th, Brent is declining, correcting after prominent growth yesterday. It is trading at 47.60 USD and might spend the whole session falling.

By the way, on Monday, OPEC is having a meeting. By the decision of the monitoring committee (that had a meeting earlier), no changes will be made in the production plans for the first six months of 2021.

The Chinese statistics this morning looks cheerful: the PMI in production grew to 52.1 points from 51.4, against 51.6 points forecast. Stabilization in the Chinese statistics is good for the oil market because China remains the world’s largest importer of oil.

On H4, Brent completed a wave of growth to 48.55. At the moment, the market is forming a consolidation range at the high of this wave. We expect the price to escape the range downwards, developing a wave of decline to 45.63. The goal is first. Practically, we will consider a wave of correction to 42.50. Technically, this scenario is confirmed by the MACD oscillator: its signal line has escaped the histogram and is heading confidently for zero.

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On H1, Brent completed the first impulse of decline to 47.30 and corrected to 48.40. Today, market is trading another impulse of decline, aiming to break through 47.30. Then we expect it to reach 46.20. The goal is estimated. Technically, the scenario is confirmed by the Stochastic oscillator: its signal line has broken through 50 top-down and is heading directly for 20.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.


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