Dmitriy Gurkovskiy | Sep 27, 2021 08:10AM ET
Early in the last week of September, the commodity market continues sparkling with optimism. Brent rose to $79 and may well attack $80.
The key support factor is market expectations of a stable demand for energies in the future. In particular, it’s the report from the International Energy Agency, which says that the need for energies in the fourth quarter of 2021 will be higher than in the third one. If to be more precise, the major hike in the demand is expected in October.
Some more support comes from the news: in August, India’s oil import added 15.8% m/m if compared with July.
The strong “greenback” doesn’t keep oil prices down at all – bulls are looking more motivated than usual.
In the H4 chart, after forming another consolidation range around 76.06 and breaking it to the upside, Brent has reached the next upside target at 79.00; right now, it is consolidating there. Possibly, the asset may start a new correction to return to 76.06 and test it from above. Later, the market may form one more ascending structure with the short-term target at 81.08. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving upwards within the histogram area, thus implying a further uptrend on the price chart.
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