A positive factor for the oil price was the information about the charter of ships by Chinese oil companies for transporting the oil in August and September. A preliminary volume to be transported from the USA to China is 20 million barrels. It may indicate that the Chinese economy is getting back to life and needs energy resources. For the oil price, it may become a long-term positive factor.
At the same time, a continuous news flow about a possibility of the second wave of COVID-19 pandemic prevents the oil from forming a stable rising movement.
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In the H4 chart, Brent is still consolidating around 45.20 and forming a Triangle pattern. Possibly, the asset may rebound from 45.20 to the upside and then form one more ascending wave to break 46.00. Later, the market may continue trading upwards with the target at 47.00 or even 49.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0. By entering the histogram area, the line may boost the rising impulse on the price chart.
As we can see in the H1 chart, Brent is consolidating around 45.20. Today, the asset may grow to reach 45.60 and then resume falling to return to 45.20. After that, the instrument may start another growth to break 45.60 and then continue trading upwards with the target at 46.00. From the technical point of view, this idea is confirmed by Stochastic Oscillator: its signal line is moving to rebound from 50 to the upside. Later, the line is expected to grow to reach 80 and then resume falling towards 20.
Author: Dmitriy Gurkovskiy, Chief Analyst at RoboForex
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.