31 May

Oil Rising in Anticipation of OPEC+ Meeting

May 31, 2021

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

The commodity market is entering the summer of 2021 with an oil rise. Brent is trading upwards not far from $69.10 in anticipation of the OPEC+ meeting this week.

Investors are looking forwards to hearing updated forecasts of the global demand for energies. They are pretty optimistic fueled by an active anti-coronavirus vaccination campaign around the world and a fluent recovery of the global economy.

Apart from this, market players hope to hear what the cartel thinks about Iran’s return to the oil market as an exporter. Earlier, the USA and Iran continued their round of negotiations and there is an opinion that it might final. This refers to Iran’s nuclear program, which attracts a lot of market attention.

In the H4 chart, after finishing the ascending wave at 68.36 and forming an upside continuation pattern there, Brent is trading to break 69.00 to continue the current uptrend with the short-term target at 71.71. Later, the market may start another correction to return to 68.36 and then resume trading upwards to reach 75.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0, which is a signal in favor of further growth.

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As we can see in the H1 chart, after reaching another upside target at 68.75 and then completing the correction towards 68.50, Brent is expected to break 70.00 and continue trading upwards to reach 71.00. Later, the market may start a new correction with the target at 68.36. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line moving above 80, which means that the asset may soon finish the ascending wave and start a new correction on the price chart.

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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