The crude oil market continues selling off. The price of a barrel of Brent dropped to $80.70 on Monday.
A little earlier, investors attempted to make crude oil rebound, as it looks oversold. However, their vigorous effort did not last, and the bears took over again.
All discussions in the nearest future are expected to be about the Fed’s meeting, the forecasts about its decisions, and the conclusions following the event.
According to the latest data from Baker Hughes, the number of active oil rigs in the US increased by three units over the week, reaching 591 drills. This is the first increase in several weeks.
On the H4 chart, Brent has broken through the 82.65 level and is correcting towards 78.20. After this level is reached, there could be a start of a new wave of growth to 87.77. And if this level breaks, it will open the potential for an upward structure towards 90.00. Technically, this scenario is confirmed by the MACD: its signal line is below zero, leaving the histogram area, which suggests further growth to new highs.
On the H1 chart, Brent has formed a consolidation range under 80.40. The correction is expected to continue to 78.85. Then an upward link to 82.65 and a decline to 78.20 could follow. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 20 and is directed strictly downwards. Growth to 50 is expected to begin, followed by a decline to 20 and a renewal of the lows.
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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.