China and a Weak U.S. Dollar Support Crude Oil
Andrey Goilov | Nov 14, 2022 05:15AM ET
Crude oil looks stable. Brent closed near 95.60 USD on Monday. Commodity investors are keeping a close eye on what is happening in China. The government has decided to soften quarantine rules for those in contact with the diseased and newly arriving in the country. Fines for airlines for letting the infected on board are abolished. These measures are yet quite random, but the very fact of this softening is, indeed, positive.
China is the largest crude oil importer, which explains why softening quarantine measures looks so positive. It means the demand for energy carriers will not shrink. An additional foothold for the crude oil sector is the decline of the USD to its four-months lows.
On H4, Brent completed a correction to 92.50 and started a new wave of growth. At the moment, it reached the local goal of 97.60. Today the market is consolidating under this level. An escape from the range upwardsofo 99.30 is expected.
After this level is reached, a link of correction to 95.80 might follow, and then — growth to 101.00. Technically, the scenario is confirmed by the MACD. Its signal line has escaped the histogram area and continues confident growth to zero.
On H1, Brent is forming a wave of growth to 99.30. At the moment, a link of growth to 97.64 has been completed. Today the market is correcting. A decline to 95.44 is not excluded. After the correction, another wave of growth to 99.30 should start.
And after it is broken away, a pathway to 101.30 should open. Technically, the scenario is confirmed by the Stochastic oscillator. Its signal line is under 20. Growth to 50 is expected. And with a breakaway of this level, a pathway to 80 will open.
Disclaimer: Any forecasts contained herein are based on the author's opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews.
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