At the start of the third week of December, we see the commodity markets growing bullish. At time of writing, Brent was rising and approaching $76.35.
However, the fundamental background for bulls remains rather negative. For example, the weekly report from Baker Hughes showed that the Oil Rig Count added 4 units and now equals 471. The drilling activities in the US continue to rise and the Department of Energy expects the daily output to reach 11.85 million barrels per day.
The US-Iran nuclear negotiations didn’t result in anything effective. This piece of news is rather neutral for the commodity market.
This week, the US is planning to sell some part of its oil resources. However, it also was expected and shouldn’t have any significant influence on the market. Shouldn’t but still may.
In the H4 chart, after rebounding from 74.00, Brent was trading upwards with the closest target at 81.70. After that, the asset may start a new correction to return to 74.00 and then form one more ascending structure towards 90.00.
From a technical point of view, this scenario is confirmed by the MACD Oscillator: its signal line is moving above 0 inside the histogram area. Later, the line is expected to continue its movement to reach new highs.
As we can see in the H1 chart, Brent is forming the third ascending structure to reach 78.10 and may later start a new correction towards 74.00. After that, the instrument may form the fifth structure with the target at 81.70. On the technical side, this idea is confirmed by the Stochastic Oscillator: its signal line is moving above 80, thus implying a further uptrend.
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.