The Brent Oil has decreased significantly today and has resumed the yesterday’s impressive drop, has fallen below some important support levels and looks determined to touch new lows. The Oil is very heavy on the short term and seems unstoppable, could reach the 53.00 psychological level in the coming hours. Is decreasing somehow surprisingly because was located above some important resistance level, but has failed to make new highs, signalling that is too overbought on the short term. A minor decrease is somehow natural after the last bullish momentum.
Remains to see what will happen when will touch the 53.00 psychological level because a drop below this level will attract more sellers, which will drive the price even below the $50 per barrel, technically the price could drop much deeper on the short term.
We’ll see what will happen tomorrow when the United States will release the Crude Oil Inventories report, the Crude Levels could increase to 0.9 million barrels in the previous week, the oil could decrease further if the indicator will come in line with expectations or better.
The price has fallen much below the median line (ml) of the minor ascending pitchfork and below the median line (ML) of the Weekly ascending pitchfork and below the 61.8% retracement level, right now is approaching the 53.03 horizontal support, a drop below this level will open the door for a larger drop, the next downside target will be at the lower median line (lml) of the minor ascending pitchfork, could approach also the 50% retracement level and the uptrend line.
Could drop further after the breakout below the confluence area formed at the intersection between the minor median line (ml) with the median line (ML) of the major ascending pitchfork, technically this decrease is natural after the failure to reach again the sliding parallel line (short ascending dotted line), is going down because has shown some exhaustion signs.
The perspective remains somehow bullish on the short to the medium term, personally I had expected to see a consolidation above the 61.8% retracement level and above the median line (ML) of the major ascending pitchfork, but the bears are still in the game and could force the rate to drop much deeper.