Crude Oil Market Continues Sliding: Brent Drops to $80.70 as Bears Take Over Again
Andrey Goilov | Apr 24, 2023 09:23AM ET
The crude oil market continues selling off. The price of a barrel of Brent dropped to 80.70 USD 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.
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.
Get The News You Want
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.