Crude Oil is Slowly Falling

On Monday, January 13th, Oil prices stopped falling right now, the instrument is consolidating around 65 USD.
Dmitriy Gurkovskiy
Brent Oil

The latest report on the number of oil rigs in the USA from Baker Hughes showed -11 units, thus bringing the total number to 659. The indicator has been decreasing for the third consecutive period.

The number of gas rigs dropped by 4 units, down to 119 totals. Overall, the number of rigs lost 15 units over the previous week and now equals to 781. Let’s remember that a year ago the indicator was 1,075 units.

It’s a pretty bullish signal for commodity market investors, but their attention is mostly focused on speculations.

For example, the US-Iranian conflict is fading a bit but still remains open. This Middle Eastern issue may catch fire in split seconds and market players will buy oil from the current levels with great pleasure only for selling it when it reaches 70.00 USD.

Stay tuned to the RoboForex Blog for exclusive financial forecasts, professional expert analysis, how-to articles and more.

As we can see in the H4 chart, Brent has broken 68.00 to the upside and may correct to reach 64.40. Possibly, today the pair may finish this descending wave and form a new one to the upside with the target at 65.00. After that, the instrument may start another correction towards 66.00 and then resume growing to reach 71.25.

From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving upwards above 0 and may leave the histogram area soon. This, in its turn, means that the pair is about to complete its descending tendency, which may be followed by another wave inside the uptrend.

In the H1 chart, after breaking 65.20 to the downside, Brent may continue falling to reach 64.60. Today, the pair may reach this level and form one more ascending wave. If later the price breaks 65.85 upwards, the instrument may continue growing to reach the first target at 68.00.

From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving below 50, thus indicating that the pair may update the low and then resume the uptrend.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex


Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.