The Brent Oil dropped today and reached new lows, but failed to stay near 55.29 low and now has squeezed a little. Price plunged on Friday and confirmed that we may have a larger drop in the upcoming weeks. Technically, it should drop much deeper after a false breakout, but it could increase a little again to retest another resistance before will really drop.
The rate is trading above the $55.50 per ounce, could increase a little if the USD/CAD will drop towards the 1.2460 static support in the upcoming days.
Brent is into a correction phase right now, remains to see how long this will be because stands above crucial support levels. Personally, I believe that only the fundamental factors could keep it higher because technically has failed to stay in the green territory.
Price dropped and resumed the bearish movement, but it could come back to retest the 250% Fibonacci line (descending dotted line) before will drop towards the downside line of the minor ascending channel. Technically, is expected to drop after the false breakout above the median line (ML) of the blue ascending pitchfork, it should be attracted by the 50% Fibonacci line (ascending dotted line), but is premature to talk about a larger drop because anything could happen.
