Oil Found Resources For Recovery
Dmitriy Gurkovskiy | Nov 08, 2021 07:44AM ET
At the second week of November, Brent oil prices are restoring. The quotations are now $83.70 per barrel.
Commodity volatility last week was provoked by an OPEC+ conference and subsequent sharp commentaries of the White House.
As forecast, OPEC+ left the parameters of returning oil volumes to the market without a change – 400 thousand barrels a day. This is good news. However, later the administration of the US President criticized this decision and stated that it was ready to use all mechanisms available to expand access to hydrocarbons.
However, no details followed, and investors compensated for the decline almost overnight.
At the beginning of the new week, the situation around oil prices stabilized thanks to demand, especially in the aviation sector.
On H4, Brent performed the first wave of decline to $82.00 and a correction to $85.00. Then the market started developing the next wave of decline. It completed a link to $80.66. Today this decline has been corrected to $84.30. We expect a new link of decline to $79.00. The goal is local. After it is reached, a correction to $84.00 might follow. Next, a new wave of decline to $77.55 should start. Technically, this scenario is confirmed by the MACD because its signal line is trading under zero. At a certain point, it left the histogram area, which suggests a correction in the wave of decline on the price chart. When the correction is over, the signal line should drop to new lows.
On H1, Brent has formed a consolidation range around $82.00. Today the market has extended it to $84.00. This link can be interpreted as a correction of the previous wave of decline. We expect the next decline to develop to $79.90. The goal is local. Then another link of correction might aim at $82.00, followed by a decline to $79.00. Technically, this scenario is confirmed by the Stochastic oscillator. Its signal line is under 80. We expect a decline to 50. After it is broken away, the decline might continue to 20.
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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