Oil price plunged and lost more than $10 per barrel in the last period. It remains to see what will really happen because this could still be a temporary drop. The WTI and Brent Oil increased a little today, but the prices could drop further and could reach fresh new lows if the US Crude Oil Inventories will come in better than expected.

Oil prices could also drop if the Loonie will drop versus the USD after the BOC. As you already know, the BOC could increase the Overnight Rate from 1.50% to 1.75% later and could push the Loonie higher. The Crude Oil Inventories could drop from 6.5M to 3.6M in the previous week.

You can see that the rate has found a very strong resistance at the outside sliding line (SL2) of the major ascending pitchfork and now it has slipped below the upper median line (UML) and the median line (ml) of the minor descending pitchfork. You can notice that the rate has found a very strong support right below the UML and has increased again. Only a valid breakdown below the UML and if the price will stay below the median line (ml) it will signal a further drop. Support can be found at the inside sliding line (SL) as well and lower at the 50% line of the descending pitchfork.

Brent Oil dropped after the failure to stay above the inside sliding line (SL)  and after the false breakout above the 150% line of the minor pitchfork. It has found a very strong resistance at the UML of the ascending pitchfork and now it was almost to reach the upside 50% Fibonacci line of the major pitchfork. This could be only a temporary drop if the rate will stay above the 50% line of the major ascending pitchfork