Price dropped as much as 55.67 level today, but failed to stay near it and now has squeezed a little. Brent is strongly bearish on the short-term and looks too heavy to be stopped at this moment. Is focused on correction after a false breakout, remains to see how long this will be because technically it should drop further in the upcoming months. However, we still need a confirmation that we’ll have a major drop on the medium term, that’s why I’m waiting for the price to come back in the upcoming days to retest and confirm some resistance levels.
Price dropped even if the USD/CAD is losing altitude, Brent will slide further if the United States data will come in better than expected. The greenback needs support from the US economy, a stronger dollar will bring more pressure on the oil’s price.
Price dropped further and is targeting the downside line of the up channel, could reach this in the upcoming days even if we’ll have a minor rebound. The perspective is bearish on the short term, but it could turn to the upside to retest the 250% Fibonacci line (descending dotted line) before will resume the corrective phase.
The false breakout above the median line (ML) of the ascending pitchfork signaled that we may have a major drop on the short to the medium term, but we still need a confirmation before we can take action again. Brent could come to retest also the median line (ML), only a rejection from it or a failure to reach this dynamic resistance will send the price towards the next important downside obstacles (61.8%, 50%, etc.).
