Oil Looking Stable

Early in another week of May, the commodity market is looking quite stable. Brent is slightly falling and trading close to $68.50, while WTI is retreating towards $68.14.
 
The statistics from Baker Hughes on the Oil Rig Count in the USA showed 352 units, which is an 8 unit increase relative to the weak before. The Total Rig Count expanded by 5, up to 453 units.
 
The market pressure reduced along with the bullish activity when the Colonial Pipeline reopened. The pipeline fuels the eastern coast of the USA that’s why its shutdown was pretty much painful for the population. It is known that the company had to pay hackers 75 Bitcoin for recovery of the lost data after which the system managed to get back to its relatively normal state and started operating properly.
 
In the H4 chart, after finishing the correctional wave at 66.40, Brent is forming one more correctional structure with the short-term target at 71.55. Later, the market may start another correction to reach 64.00 and then resume trading upwards with the target at 75.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 outside the histogram area, which is a signal in favor of further growth.

 
As we can see in the H1 chart, after reaching the first upside target at 68.75, Brent is expected to correct towards 67.60. Later, the market may form another ascending structure with the short-term target at 70.33. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line moving below 20, which means that the asset may soon finish the descending wave and resume growing on the price chart.
 

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