The Brent Oil has increased sharply today and has jumped above 51.82 yesterday’s high and has reached the 52.42 pivot point. Will resume the minor bullish momentum if will jump above and will close above the mentioned pivot point.
Has increased significantly today also because the Loonie has increased sharply versus the greenback, the Brent is approaching an important dynamic resistance, remains to see how will react when will hit this level. The USD/CAD has dropped sharply today even if the USDX has edged higher and has touched new highs, the index has slipped lower in the last hours even if the United States Pending Home Sales have increased by 5.5% in February, beating the 2.3% estimate, the economic indicator has increased significantly after the 2.8% drop in January.
The price has increased in the last days as the behavior has changed on the short term, has started to make higher lows, signalling an oversold situation.
Has found strong support near the $50 per barrel and could approach and reach the 53.03 major static resistance (support has turned into resistance) before will decrease again. The Oil has increased further as the US Crude Oil Inventories were reported at 0.9 million barrels in the previous week, much lower versus the 1.2M estimate and much below the 5.0M in the previous reading period.
The rate has increased and has jumped above the 150% Fibonacci line (ascending dotted line) and is very close to hit the upper median line (uml) of the descending pitchfork, when he could find temporary resistance again. I’ve said in my previous analyze that the rate will increase significantly if will test the minor confluence area between the median line of the minor descending pitchfork with the median line of the minor ascending pitchfork. I’ve drawn the minor ascending pitchfork to catch the bullish momentum, so the perspective is bullish as long as the rate will stay inside this pitchfork’s body.
The medium major upside movement started in January 2016 will resume only if the rate will have enough energy to jump and to stabilize above the 61.8% retracement level and above the median line (ML).