Brent Price Remains Unstable
Andrey Goilov | Feb 20, 2023 09:04AM ET
The crude oil market keeps floating on the waves of uncertainty. On Monday, a Brent barrel is trying to grow to 83.45 USD. However, purchases do not look reassuring.
On the one hand, investors keep an eye on the global supply/demand balance.
China has not demonstrated yet the activity that everyone is expecting from it, and this prevents the quotes from growing. Moreover, strong USD hinders any increase in energy carriers prices. On the other hand, the US is considering replenishing the strategic reserve of hydrocarbons, while India acquires more and more weight in the crude oil market.
These days everyone wants to trade with India as it is the most active buyer, though six month ago its reputation was more than questionable.
The market seems to have taken a pause to look around and gather information as what is at hand is clearly not enough to make decisions.
On H4, Brent has completed a wave of growth to 86.66 and a correction to 81.55. Today the market is forming a structure of growth to 84.90. After this level is reached, a link of decline to 82.82 is not excluded, followed by growth to 88.88. Technically, this scenario is confirmed by the MACD. Its signal line is preparing to leave the histogram area and continue growth to new highs.
On H1, a wave of growth to 83.25 has been completed. Today the market is forming a consolidation range. AN escape upwards and further development of the wave of growth to 84.90 is expected. The goal is local. After this goal is reached, a link of decline to 83.25 is not excluded, followed by growth to 84.98. Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is above 80. A decline to 50 is expected, followed by a return to 80.
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.
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