By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
At the beginning of the week, Oil prices are stable as Brent is trading at 64.42 USD.
Right now, there are no obvious speculative drivers that may push the commodity market in some particular direction. According to the weekly report on the Crude Oil Inventories and the Natural Gas Storage, both indicators are going down, which is quite okay for this time of the year. The Middle-East factor is rather calm, so there is no support to aggressive buyers. Moreover, the USD is looking pretty stable, but this week may change a lot.
The Baker Hughes Oil Rig Count report published last week turned out to be in favor of bulls. The report showed -4 units in comparison with the previous week and 963 units total. On YoY, the decline has already reached 89 units, which is quite serious.
To be more detailed, the current number of oil rigs is 788 units, while the highest number in 2018 was 888 units.
In the H4 chart, Brent is trading upwards. Possibly, the pair may grow with the first target at 67.50. Later, the market may start a new correction to reach 63.75 and then resume trading inside the uptrend with the short-term target at 70.00. From the technical point of view, this scenario is confirmed by Stochastic Oscillator, as its signal has reversed away from the “oversold area” and is currently moving upwards.
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As we can see in the H1 chart, Brent is trading to break 64.90. After that, the instrument may continue trading inside the uptrend with the short-term target at 65.50 and then start a new correction towards 65.00. Later, the market may form one more ascending structure with the first target at 67.50. From the technical point of view, this scenario is confirmed by MACD Oscillator, as its signal line has broken 0 to the upside. As a result, the price may boost its growth towards 66.50.
Disclaimer
Any predictions contained herein are based on the authors’ 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.
