Commodity prices have been growing for seven weeks in a row. On Monday, 14 August, the price of a Brent barrel is hovering near 85.78 USD.
This local correction is not surprising – occasionally, investors return to minor sales. The fundamental background remains favourable for buyers who find a foothold in the supply shortage in the second half of 2023.
Meanwhile, global crude oil demand calculated by the IEA set a record of 103 million barrels daily in June. In August, it might reach a new peak.
Technical analysis of Brent:
On the H4 Brent chart, the price has reached a local target of an ascending wave at 87.71. At the moment, a consolidation range is forming under this level. Breaking it downwards, the price could perform a correction link to 87.20. Next, a new wave of growth to 93.80 might begin, from where the trend could continue to 103.93. Technically, this scenario is confirmed by the MACD, whose signal line has left the histogram area and aims strictly downwards.
On the H1 Brent chart, a structure of a declining impulse to 85.55 and its correction to 86.90 formed. Today, the market has completed a new link of decline to 85.30. At the moment, a consolidation range is being formed above this level. With an escape from the range upwards, a growth link to 86.00 is not excluded, followed by a decline to 83.44, from where the correction might continue to 82.70. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 20, preparing for further growth to 50.
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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Crude Oil Rallies for 7-Weeks in a Row: What's Next?
Published 08/14/2023, 09:40 AM
Updated 02/15/2024, 03:13 AM
Crude Oil Rallies for 7-Weeks in a Row: What's Next?
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