Oil Bulls Pick Up Momentum

At the beginning of this September week, Oil prices are moving upwards slowly, but steadily. The instrument is currently trading at 62 USD and looking pretty fine.

On one hand, bulls were supported by the Friday statistics from Baker Hughes, which showed minus 6 units with the total number equal to 898. In more details, the number of oil and gas rigs dropped 4 and 2 units respectively. As a result, the US Oil sector is becoming less active, which is a real present for bulls.

On the other hand, investors are clearly nervous over what is happening in Saudi Arabia, where the Saudi king named his son Abdulaziz to the key post of the country’s energy minister. The former minister, Khalid al-Falih, was one of the key men in OPEC+, so now market players must realize how the Cartel may change and what consequences for the parties these possible changes may carry. As usual, at the time of political and economic instability, Oil goes up speculatively, “just in case”.

Technically

In the H4 chart, Brent is consolidating around 62.40; this movement that started from 57.50 may be considered as the third rising wave. Possibly, today the pair may fall to reach 61.400 and then start a new growth towards 64.00. Later, the market may form one more descending wave to reach 63.00 and then resume trading upwards with the predicted target at 65.00. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal is moving to the upside, which implies continuation of the current uptrend to reach 65.00.

As we can see in the H1 chart, Brent has once again reached 62.40. Possibly, the pair may correct towards 61.50 and then start a new growth to reach 62.50. After breaking this level, the instrument may continue growing with the predicted target at 65.00. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving towards 50.00, thus implying a possible correction. After that, the indicator may continue rising towards 80.00.