The Brent Oil increases and looks determined to stay above the 57.72 horizontal support (resistance turned into support). Price climbs higher after the last two decreasing days, is fighting hard to recover and to stay in the green territory.
Oil increased also because the USD/CAD slipped lower and erased the morning gains, remains to see what will happen because the currency pair maintains a bullish perspective on the short term because is located above some important broken resistance levels.
Brent rallies also because the United States Crude Oil Inventories have plunged in the previous week, the indicator has reported at -1.8M, even if the traders have expected to see it at 2.9M.
Technically, the price is expected to climb towards new highs in the upcoming period, the minor drop was natural after the impressive rally.
Price bounced back from the 250% Fibonacci line (descending dotted line) and tries to recover after the immense drop. Brent has found strong support on the 250% line, so we had only a false breakdown below the 57.72 static support. The failure to reach and retest the median line (ML) of the major ascending pitchfork is signaling a further and powerful increase. However, personally, I still believe that we may have a minor consolidation in the upcoming period because the rate needs to recapture more directional energy before will climb towards the wl2 or towards the major dynamic resistance from the sliding parallel line (SL).
