Oil prices slide to $71.74 as China’s stimulus measures disappoint, impacting market confidence. Weak inflation and subdued energy demand in China contribute to the downturn. Additionally, the strength of the US dollar makes commodity investments less appealing, as a strong dollar dampens demand for dollar-priced assets like oil. Despite stable geopolitical conditions in the Middle East reducing risk premiums, investors await the monthly OPEC report for insights into supply-demand dynamics and global oil demand forecasts.
Brent Technical Analysis
On the H4 chart of Brent, a consolidation range is seen around $73.66 to $71.33. A growth to $73.66 is expected, followed by a possible downside to $71.22. A further uptrend to $76.00 and potentially $80.80 is considered, supported by the MACD indicator showing a bearish trend. On the H1 chart, a correction to $73.66 is anticipated, with a subsequent decline to $71.22, signaling the end of the downward wave according to the Stochastic oscillator.
By RoboForex Analytical Department
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.