Crude Oil Looking Up Again amid Strong Chinese Statistics

The crude oil price is starting another week of March with a growth. Brent is currently trading at $69.58 and trying to keep its positive momentum amid some strong Chinese statistics published this morning.
 
For example, the Industrial Production in China added 35.1% y/y in February after increasing by 7.3% y/y the month before and against the expected reading of 31.2% y/y. Another report, the Retail Sales, showed 33.8% y/y after being -4.78% y/y in January.
 
Such impressive statistics give reasons to expect an explosive recovery of the Asian economy this year. China is the world’s biggest crude oil importer and the world’s second oil consumer. A boost in the Chinese economy is extremely positive for oil-producing companies.
 
In the H4 chart, after rebounding from 66.30, Brent is forming another ascending wave with the target at 72.00; it has already reached 69.15 and right now is consolidating around the latter level. Possibly, the asset may break the range to the upside and resume growing towards the above-mentioned target. After that, the instrument may start another correction to reach 60.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 and may enter the histogram area soon. After that, the asset may boost its growth on the price chart.
 

 
As we can see in the H1 chart, Brent is moving inside a consolidation range around 69.15, which may be considered as an upside continuation pattern. The short-term target is at 71.80. After that, the instrument may correct to return to 69.15 and then resume growing with the target at 72.00. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 50 to the upside, its signal line is expected to move towards 80, thus confirming a further uptrend on the price chart.
 


By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

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.