Crude Oil Starts The Week Upbeat
Dmitriy Gurkovskiy | Sep 13, 2021 07:20AM ET
Brent was rising today, trading at $73.60. The Baker Hughes report showed a 7 unit increase in the Oil Rig Count last week. It appeared that the tendency might continue this week as well—the oil producing companies are slowly getting back to normal after the Gulf of Mexico storm.
According to the latest data, about 70% of facilities aren’t operating so far and that’s approximately 1.4 million barrels per day. However, as the number of rigs is slowly increasing, the daily output will get higher as well.
This week, market players’ attention will be focused on the oil supply/demand data from the International Energy Agency. A similar report will be published by OPEC.
In the H4 chart, after completing the correction at 71.20 and rebounding from this level upwards, Brent was trading to break 73.30 and had almost formed an upside continuation pattern. The short-term upside target was at 75.50. After reaching this level, the asset may return to test 73.30 from above and then start a new growth towards 78.50.
From a technical point of view, this scenario was confirmed by the MACD Oscillator: after rebounding from 0, its signal line was expected to continue moving upwards to reach new highs.
As we can see in the H1 chart, after forming a new consolidation range around 73.30 and then expanding it up to 73.85, Brent returned to 73.30. Possibly, the asset may break the upside border of this range and resume trading upwards the short-term target at 75.50. Later, the market may correct in the form of a Flat pattern to return to 73.30 and then resume trading upwards to reach 78.50.
From a technical view point, this idea was confirmed by the Stochastic Oscillator: its signal line was moving above 50 and was expected to continue growing to reach 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.
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.