FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
FxPro information and reviews
FxPro
90%

Crude Oil Can't Resist Pressure


25 April 2022 Written by Dmitriy Gurkovskiy  Senior analyst at RoboForex Dmitriy Gurkovskiy

Early in the final April week, oil prices are declining; Brent has reached $103.40. The key reason for this is a new coronavirus outbreak in Shanghai, China. Earlier, Shanghai authorities started slowly removing social restrictions – about 70% of the companies got back to their normal working routine. However, the population’s mobility is still very restricted because the rising tendency in the number of new cases returned last weekend. The Chinese lockdown limits the demand for fuel, thus having a serious impact on energy prices.

The influence of the lockdown in China on global oil prices is pretty strong but it's early to assess how much time it might continue. Last Friday’s report from Baker Hughes didn’t show anything positive. The Oil Rig Count in the US gained 1 unit, up to 549. At the same time, Canada’s indicator lost 1 unit. Market players can’t find signals that high energy prices boost the US shale industry, that’s why this aspect is moving to the back burner.

In the H4 chart, having completed the ascending impulse at 114.96, Brent is finishing the correction towards 102.40 and may later consolidate there. If the price breaks this range to the upside, the market may form one more ascending structure to break 117.22 and then continue moving within the uptrend with the short-term target at 132.30. From the technical point of view, this scenario is confirmed by MACD Oscillator: after breaking 0 to the downside, its signal line is falling within the histogram area, which means that the correction in the price chart may continue.

Brent H4 chart

As we can see in the H1 chart, after reaching the correctional target at 104.30, Brent is expected to consolidate there. Later, the market may resume growing to break 114.80 and then continue trading upwards with the short-term target at 132.20. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving above 20 and may grow to break 50. After that, the line is expected to continue moving upwards and reach 80.

Brent H1 chart

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.
#source

Share:


Related

Penny Stocks: What Are They?
Penny Stocks: What Are They?

Locating penny stocks with buy ratings is getting more and more challenging. The markets become less adventurous as interest rates rise. That indicates that penny stocks, which are riskier by definition...

20 Sep 2022

Bitcoin and Ethereum: Inflation Brought Down The Prices
Bitcoin and Ethereum: Inflation Brought Down The Prices

Strong inflation brought down the price of bitcoin yesterday from $22,800 to the $20,000 support level. This morning, the price of Ethereum formed a new seven-day low at the $1550 level...

15 Sep 2022

Cooler USD & Stocks Higher Ahead of CPI
Cooler USD & Stocks Higher Ahead of CPI

USDIndex – Slips (108.00 tested) for a 5th straight day, lifting EUR & GBP. Fed Funds Futures back to 90% chance of 75 bp (third consecutive) hike...

14 Sep 2022

Copper’s Price: What’s happening?
Copper’s Price: What’s happening?

In this article, we will discuss what has happened to the price of copper. When your money loses some of its purchasing power, you stop caring about supply and demand...

14 Sep 2022

The Inflation Monster Strikes. Better One Small Fish Than An Empty Dish
The Inflation Monster Strikes. Better One Small Fish Than An Empty Dish

London Mayor Sadiq Khan says that millions of Britons won’t be able to afford heating or basic food this winter if things remain as they are now. The present state of affairs has no precedents in the past...

9 Sep 2022

After a recent selloff, Wall Street is expected to rise
After a recent selloff, Wall Street is expected to rise

Expectations that the Federal Reserve might lower interest rates to combat inflation. This idea did not have a chance because of the labor market data. Investors are concerned...

7 Sep 2022


Editors' Picks

HFM information and reviews
HFM
89%
IronFX information and reviews
IronFX
88%
FXCM information and reviews
FXCM
87%
NordFX information and reviews
NordFX
85%
Vantage information and reviews
Vantage
84%
FP Markets information and reviews
FP Markets
81%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.