The Brent Oil has reached new lows today, but has recovered in the last hours and is struggling to increase again on the short term, we’ll see what will happen in the coming days because the rate is under pressure on the short term, has increased a little also because the Loonie has appreciated versus the USD in the US trading hours. The price is challenging a dynamic resistance right now, has increased above the 48.00 psychological level, remains to see if will have enough energy to close around this level.

The rate has decreased significantly on Friday and has failed to stay above the 50% retracement level, the price has decreased because the USD has managed to rebound on the short term, the dollar has increased sharply versus the Loonie, the rate could drop again in the coming period because has failed to consolidate above the 50% retracement level, has also failed to break above the second warning line (wl2) of the former ascending pitchfork.

The price has slipped again inside the minor descending pitchfork, right now is retesting the upper median line (uml) of the descending pitchfork, will drop deeper if will stay below this dynamic resistance. We’ll have a larger decrease if the price will have enough directional energy to take out the third warning line of the former ascending pitchfork.

Persoally, I’m expecting to see the rate much deeper in the coming weeks because is located in the seller’s territory, could approach the 38.2% retracement level and also the median line (ml) of the descending pitchfork. We still need a confirmation that the rate will start a broader decrease, we’ll have a selling opportunity if the rate will break below the third warning line (wl3), the Brent is moving somehow sideways on the short term, but the failure to reach and retest the median line (ML) of the major ascending pitchfork  and also the highest high from 53.03 level is signaling that the price has lost the bullish momentum and could decrease on the short term again.