The Brent Oil has finally managed to take out an important resistance level and could increase significantly till the end of the year. The rate has opened with a gap up today, but has come back down, is trying to close this gap, is decreasing also to test and retest the broken resistance area. The rate is expected to increase further after the OPEC deal, as you already know, the oil production will be cut, the price ha rallied after this decision. Today we had a crucial breakout, it was important for the price to jump above a major confluence area, so technically should increase significantly if will have enough energy to stay above the 54.0 psychological level.

The rate has decreased sharply after the morning gap up, is approaching the 61.8% retracement level and the median line (ML) of the major ascending pitchfork, a test and retest of the confluence area will give us a good opportunity to go long on Brent, technically is expected to increase further if will stabilize above the broken confluence area, could approach the $60.0 psychological level if the FED will disappoint on Wednesday.

Only a failure to stay above the mentioned broken resistance level, but personally I don’t think that this scenario will happen, we’ll see if will decrease much to more to close the gap, because we could find strong also at the fourth warning line (wl4) of the ascending pitchfork. The rate could be attracted by the confluence area formed by the 60.02 horizontal resistance with the third warning line (wl3), but only after a minor consolidation, we could have an accumulation movement these days because he may need to recapture more directional energy, could decrease tomorrow as well also because has failed to touch the third warning line (wl3) of the ascending pitchfork.

The rate has increased today as much as 56.57, but the bears have stepped in again, but as I’ve said, the current retreat could be only temporary  and the price could extend the latest gains.