Crude Oil Stays at Its Two-Year High

On Monday, July 5th, oil prices remain high despite the fact that the OPEC+ decisions haven’t been made yet. Brent is trading at $76 and may continue rising as market players are waiting for nothing but positive from the cartel.
 
A bit earlier, there was a meeting of the OPEC ministerial committee, which recommended increasing oil extraction by 400 thousand barrels per day from August to December, as well as extending the current active agreement until December 2022. The United Arab Emirates were in opposition to that: the country needs more significant numbers – they require a daily output of 3.8 million barrels instead of 3.168 million.
 
Due to attitudinal differences, the cartel’s final meeting was rescheduled twice, at first for Friday, and then for Monday. Investors are very interested in whether OPEC+ can find the balance and prevent the alliance from collapsing.
 
In the H4 chart, after breaking 75.00 to the upside, Brent is still forming the ascending wave and has already reached 76.50. Today, the asset may correct to return to 75.00 and then resume trading within the uptrend with the target at 78.30. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 and has re-entered the histogram area, thus confirming a further uptrend on the price chart.
 

 
As we can see in the H1 chart, Brent continues trading upwards and forming another ascending wave towards 77.59. Today, the pair may reach 76.93 and then form a new descending structure to test 75.50 from above. After that, the instrument may resume trading upwards with the target at 77.59. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after returning to 50, its signal line is expected to rebound and resume growing towards 80.
 


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.