Brent Oil bounced back January 11, 2017

The Brent Oil has increased today and has managed to erase the yesterday’s losses, has increased, but the perspective remains uncertain on the short term, maybe  the today rebound will be only temporary and the price will resume the bearish momentum. The bound back could be considered only a retest of the broken support levels, however the today’s increase was somehow expected because the bearish momentum was paused by the 53.03 static support, the price has touched this level, but wasn’t able to break below this major downside obstacle.

The price has increased somehow surprisingly if we think that the United States Crude Oil Inventories have come much better than expected, the Crude Levels were reported at 4.1 million barrels, much higher compared to the 0.9M estimate. The US  Crude Stocks have increased again after the massive drop from the previous reporting period, the indicator had dropped to -7.1M in the week ended on December 30.

The price has increased a little as the Loonie has managed to increase significantly versus the USD, the USD/CAD has plunged in the United States trading session, signalling that the bears are still in control.

The price has increased after has tested the 53.03 static support, has comeback to test the broken confluence area formed at the intersection between the minor median line (ml) of the minor ascending pitchfork with the median line (ML) of the major ascending pitchfork, has managed to climb above the 61.8% retracement level, but remains to see if will have enough directional energy to climb much higher, or the rate will come back down and will take out the 53.03 major horizontal support.

I’ve said in the yesterday’s article that the price will be attracted by the lower median line (lml) of the minor ascending pitchfork if will close below the 53.03 support, could drop even to approach and reach the 50% retracement level and the uptrend line, this scenario will take shape only if the price will be rejected by the median line (ML) of the major ascending pitchfork. However the rate could resume the medium term upside target if will stay above the 53.03 static support.

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