The Brent price is updating its 7-year highs. The asset is currently trading at $95.50 and may continue rising. There are several factors for commodity bulls right now that they use to the max. First of all, the lack of any constructive news about the US-Iran nuclear deal.
It’s been not the first and not the last time the countries talked, there will be more negotiations for sure, but investors want to see some positive breakthrough in the talks. The second factor is the Russia-related geopolitical escalation, which raises concerns about a possible interruption in deliveries of Russian oil. Of course, all this is just in theory, but investors are worried.
Last Friday’s report from Baker Hughes showed that the Oil Rig Count in the US added 19 units, up to 516. However, it’s rather unclear whether it was a new tendency or just a temporary explosion.
Technical View
In the H4 chart, having completed the ascending structure at $94.60 and breaking it to the upside, Brent is expected to return to this level and test it from above. After that, the instrument may grow with the short-term target at $98.11 and then start a new decline towards $97.00.
Later, the market may form another ascending structure to reach $102.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 inside the histogram area, thus indicating a further uptrend in the price chart.
As we can see in the H1 chart, after forming a new consolidation range around $92.10 and breaking it to the upside, Brent has completed the ascending structure at $96.50; right now, it is correcting to test $94.60 from above or even may extend this correctional structure down to $93.00.
Later, the market may resume trading upwards with the short-term target at $98.06. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after returning to 50, its signal line is expected to break this level and continue falling towards 20. After that, the line may resume its growth to reach 80.
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.