The Brent Oil has increased further today, has reached new highs, but right now is pressuring a very strong resistance level, actually the rate has jumped above this static obstacle and remains to see if will have enough energy to stabilize above the $49.00 per barrel. The price continues to trade in the green on the short term, has increased sharply in the last 4 consecutive days  and could increase further if the rate will ignore the 49.00 psychological level because a rejection here will attract the sellers.

The price is challenging the 50% retracement level right now, remains to see if will have a valid breakout or it was only a false breakout. Further increase is expected if the price will close today above the 50% retracement level, we’ll a a good opportunity to go long on the price if will have a short consolidation here, the next upside target will be at the 61.8% retracement level and at the median line (ML) of the major ascending pitchfork, we’ll have a broader rebound if the rate will ignore the mentioned resistance levels, but we’ll have to be patient till then because the price could be rejected  and could drop gain.

The outlook remains bullish on the short term, the previous retreat was natural after the last ascending swing, the corrective phase could resume if the buyers will have enough power to push the rate above the previous high from 53.03 level, I want to remind you that another rejection from the median line (ML) of the major ascending pitchfork will force the price to drop sharply and most likely will fall even below the previous low from the 41.03 level.

Remains to see what will happen because the rate could trade sideways in the coming weeks, between the 41.03 and the 53.03 swing high.

If you’ll take a look closer, you’ll notice that the price has formed an inverse Head and Shoulders pattern, the chart patter will be confirmed only if the rate will stabilize above the previous high from 53.03 level.