Brent Failed to Rise Despite Improved Sentiment

<p><strong>By <a href="https://roboforex.com/?utm_source=investmarco.com&amp;utm_medium=pr&amp;utm_campaign=rf_en_external_article_17072023&amp;utm_content=analysis&amp;utm_term=forecast&amp;a=ohrb"><u>RoboForex</u></a> Analytical Department</strong></p>
<p>Crude oil prices have paused in their rally. Brent quotes on Monday dropped to 79.20 USD per barrel.</p>
<p>One of the reasons for this local decline might be the market decision to lock in a part of the profit after the steady growth earlier. This version is also supported by the fact that today is the first work day after the weekend.</p>
<p>At the same time, the commodity market sentiment improved noticeably over the last week. Large investment houses still expect a shortage in crude oil supply in the second half of this year, which looks like a favourable factor, keeping in mind the current demand parameters.</p>
<p>The buyers are equally supported by the fundamental background. The geopolitical situation in Libya is unstable, which might lead to problems with the supply of energy carriers.</p>
<p><strong>Technical analysis of <a href="https://roboforex.com/beginners/info/charts/energies/brent/?utm_source=investmarco.com&amp;utm_medium=pr&amp;utm_campaign=rf_en_external_article_10072023&amp;utm_content=analysis&amp;utm_term=forecast&amp;a=ohrb"><u>Brent</u></a>:</strong></p>
<p>On the H4 Brent chart, the structure of the third wave of growth is developing. At a certain point, the quotes rose to 78.00. A consolidation range formed around this level, the price broke it upwards and extended to 81.45. Today the market is correcting this growth. A technical return to 78.00 is expected with a test of this level from above. Next, a rise to 84.00 is to follow. This is a local target. After the quotes reach this level, a new correction to 78.00 could develop, followed by an increase to 85.00. This is the first target. Technically, this scenario is confirmed by the MACD: its signal line is at the highs, moving out of the histogram area, which is a signal in favour of a decline to zero.</p>
<p><a href="https://investmacro.com/wp-content/uploads/2023/07/BRENTH4.png"><img data-dominant-color="f0f0f3" data-has-transparency="true" style="–dominant-color: #f0f0f3;" decoding="async" loading="lazy" class="has-transparency aligncenter size-full wp-image-214493" src="https://investmacro.com/wp-content/uploads/2023/07/BRENTH4.png" alt="" width="1593" height="707" srcset="https://investmacro.com/wp-content/uploads/2023/07/BRENTH4.png 1593w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH4-160×71.png 160w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH4-1024×454.png 1024w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH4-150×67.png 150w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH4-768×341.png 768w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH4-1536×682.png 1536w" sizes="(max-width: 1593px) 100vw, 1593px" /></a></p>
<p>On the H1 Brent chart, a corrective wave to 78.00 is developing. After it is over, a wave of growth to 84.00 is expected to start. This is a local target. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 20, ready to go on growing to 50. And if this level also breaks, the potential for a rise to 80 could open.</p>
<p><a href="https://investmacro.com/wp-content/uploads/2023/07/BRENTH1.png"><img data-dominant-color="eff1f4" data-has-transparency="true" style="–dominant-color: #eff1f4;" decoding="async" loading="lazy" class="has-transparency aligncenter size-full wp-image-214494" src="https://investmacro.com/wp-content/uploads/2023/07/BRENTH1.png" alt="" width="1593" height="707" srcset="https://investmacro.com/wp-content/uploads/2023/07/BRENTH1.png 1593w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH1-160×71.png 160w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH1-1024×454.png 1024w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH1-150×67.png 150w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH1-768×341.png 768w, https://investmacro.com/wp-content/uploads/2023/07/BRENTH1-1536×682.png 1536w" sizes="(max-width: 1593px) 100vw, 1593px" /></a></p>
<p><u>Disclaimer</u></p>
<p><em><i>Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. </i></em><em>RoboForex bears no responsibility for trading results based on </em><em><i>trading recommendations and reviews contained herein.</i></em></p>