The WTI and the Brent Oil prices have jumped higher today, but we still need a confirmation that the rates will reach fresh new highs and will resume the long term upside movement. The Oil could increase after the Crude Oil Inventories release, the indicator was reported at -5.3M in the previous week, much below the -1.3M estimate and below the -4.3M in the former reading period.

The WTI Crude Oil has managed to reach the 150% Fibonacci line of the descending pitchfork which represents a strong resistance. It is still premature to talk about a further increase and about fresh new highs as long as the rate is located much below the 150% line of the major ascending pitchfork, SL1 and SL2 dynamic resistance. It is trading much below the 75.24 static resistance, so only a valid breakout above this level could signal a potential further increase towards new highs.

Maybe the rate will decrease a little again before will really try to resume the major upside movement. A failure to reach the mentioned resistance levels will signal an exhaustion and a potential downside movement.

Brent Oil is almost to reach the upper median line (uml) of the minor descending pitchfork which represents a strong resistance. The rebound is natural after the failure to make a valid breakdown below the median line (ml) of the descending pitchfork. We have a very strong resistance at the inside sliding line (SL). A valid breakout above it will signal a potential increase towards the UML. Right now is very important for the price to make a valid breakout above the 80.47 static resistance to be able to increase further.

A failure to reach the near-term resistance levels or a false breakout will send the rate down on the short term.