Brent Oil increased significantly in the Tuesday’s session and has managed to stay above an important dynamic dynamic resistance. Now is trading in the red again and tries to resume the yesterday’s bearish candle. Price changed little today and stays much above the 58.20 yesterday’s low, but could still approach the broken dynamic resistance in the upcoming hours.
Price has shown exhaustion signs in the in the last weeks but maintains a bullish perspective on the short term, right now we don’t have any confirmation that the Brent will turn to the downside and will start a larger drop.
The price decreased in a little maybe because the United States Crude Oil Inventories have come in better then expected, were reported at 0.9 million barrels in the previous week, much higher versus the -2.6M estimate and versus the -5.7M in the former reading period.

The rate decreased and could reach and retest the median line (ML) of the major red ascending pitchfork. A valid breakout above the median line (ML) will signal a further increase at least till will reach the 59.47 previous high.
I’ve said in the previous articles that the failure to close above the former high will signal a larger drop, but a leg lower will be confirmed only the a valid breakdown below the ML. Brent is moving higher between the lower median line and the median line of the minor ascending pitchfork. Personally I believe that the rate will breakdown from the ascending pitchfork’s body if will reaach the lower medain line (lml). Will drop sharply if will escape from the minor ascending pitchfork’s body.
It could try to approach and reach the median line (ml) again, but a failure will signal an overbought and a potential leg lower. The rate could drop more than $10 if will escape from the ascending pitchfork’s body.