Oil Under Pressure Again

The oil market is still having a tough time. On Monday, Mar. 29, Brent is falling and costs $63.60. By now, the Suez Canal has been unblocked and international ships will resume their course in the nearest future. For several days, financial markets had been counting losses incurred from demurrages but it’s quite clear right now that there weren’t too many “victims” after all. For example, India, one of the key oil importers through the Suez Canal, gets the essential portion of the oil from the Persian Gulf.
 
Due to extended lockdowns, France, Italy, and Germany consume much fewer energies than they could have and that is also a pressure factor. The United Kingdom, where the government is starting to slowly remove some quarantine restrictions, is not planning to increase the number of air transportations with tourists, which is another thing that influences the demand for oil.
 
In addition to that, earlier investors didn’t pay attention to the fact that the US oil reserves were increasing, which is now can’t be ignored.
 
In the H4 chart, after reaching 64.70, Brent is correcting towards 62.80. After completing the correction, the asset may start another growth to reach 65.52 and then form a new descending wave with the target at 60.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving outside the histogram area to grow and reach 0.

As we can see in the H1 chart, Brent is correcting upwards to reach 62.77. Possibly, today the asset may reach this level and then form another ascending wave with the target at 65.50. Later, the market may start a new descending movement. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line growing towards 50 and may later resume falling to reach 20. After that, the line may reverse upwards and grow towards 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.