The Brent Oil edges lower on the short term and seems poised to resume the bearish momentum started in the previous week. Price increased significantly in the yesterday’s trading session and retested a major dynamic resistance, but failed to stay near this level as the bears have taken full control again. Price dropped below the 56.00 psychological level and it could close below the 55.67 previous low very soon.

I’ve said in the previous reports that we may have another broader drop if the rate will stay below a dynamic resistance, this scenario could take shape in the upcoming days. Price drops further even if the USD/CAD slips lower after the mixed US data. The NFP has dropped unexpectedly lower in the previous month, it was reported at -33K, the lowest level since October 2010, that’s why the USD could drop versus all its rivals in the start of next week.

Oil stays in the red even if the Canadian Unemployment Rate has stayed steady at 6.2% for the second month in September, even if the traders have expected to see an increase to 6.3%, but unfortunately, the Employment Change was reported at 10.0K, less versus the 13.9K estimate.

Brent increased in the yesterday’s session as the United States Crude Oil Inventories have disappointed on Wednesday.

Price drops very fast and should hit the lower median line (lml) of the ascending pitchfork soon. Is trading in the red after the false breakout above the median line (ML) of the major ascending pitchfork. I’ve said in the previous article that a larger drop is favored after the false breakout above the ML and after the failure to reach and retest the median line (ml) of the minor ascending pitchfork.

A valid breakdown from the minor ascending pitchfork’s body will really validate a further drop in the upcoming period. I’ve said yesterday that only a valid breakout above the ML could signal a further increase at this moment, but this is less likely to happen.