Crude Oil is Falling in Late April
Dmitriy Gurkovskiy | Apr 26, 2021 11:51
On Monday, April 26th, Brent is falling and trading at $65.50. The key reason for this decline lies in a new wave of concerns relating to weak demand for energies against active supply.
Investors still can’t match a rather weak demand for oil and energies all over the world and an increased supply. Global economies are recovering rather slowly and can’t provide oil manufacturers a lot of opportunities for selling. At the same time, according to the OPEC+ decision, daily output quotas are expanding. However, it is rather unclear who will buy all this oil.
The oil market doesn’t take into account the Libya factor, which earlier pushed the price upwards. Still, the weekly reports on the Crude Oil Inventories from the USA are rather “bearish”.
In the H4 chart, after finishing another ascending wave at 67.50, Brent is correcting towards 63.63. Later, the market may form one more ascending structure with the target at 68.40. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0, which is a signal in favour of further decline.
As we can see in the H1 chart, after reaching the short-term correctional target at 64.00 and completing the correction towards 65.55, Brent is expected to form another descending structure to reach 63.63. After finishing the correction, the pair may form one mow ascending wave to break 65.55 and then continue trading within the uptrend with the short-term target at 67.00. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line moving below 20, which means that the asset may soon finish the descending wave and resume growing on the price chart.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
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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