Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Oil prices plummet rapidly

Published 26/02/2024, 11:38
Updated 15/02/2024, 08:13

The price of a Brent barrel is sharply declining on Monday and has already reached 81.20 USD.

The primary reason for this is concerns about demand outweighing fears about global commodity supply. It's pretty straightforward: high US inflation, increasingly confirmed, may delay interest rate cuts by the Federal Reserve, indirectly stimulating oil demand. Hence, the delay in the monetary easing cycle is unsettling the oil sector.

The US dollar position remains weak, generally benefitting commodity buyers.
Once market concerns fade away, prices are highly likely to resume their upward trajectory.

Тechnical analysis

On the H4 Brent chart, a consolidation range has formed around 81.60. Currently, the market has extended it up to 82.82. Today, the range is expanding down to 80.20 with a corrective wave practically forming. Once this is over, the price might rise to 81.60 (a test from below). Next, another corrective link to 79.80 could follow. After its completion, another upward wave could start, targeting 83.30, from where the trend might proceed towards the first target of 86.60. Technically, this scenario is confirmed by the MACD, with its signal line below the zero level, poised to reach new lows.

On the H1 Brent chart, a declining wave is forming, targeting 80.20 as a local target. After reaching this level, the price could rise to 81.60, with the subsequent correction expected to continue to 79.80. Technically, this scenario is confirmed by the Stochastic oscillator, with its signal line below 20 and anticipated to rise to 50, potentially maintaining its upward momentum towards 80.

By Roboforex Analytical Department

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.