Brent Oil to face downward pressure before extending higher – Credit Suisse
|Brent Crude Oil maintains its base above $37.28 but trades down -1.37% on day to $42.77. Economists at Credit Suisse expect the black gold to extend the current consolidation phase before stretching higher.
Key quotes
“Brent Crude extends its near-term consolidation but maintains its base above the 38.2% retracement of the Q1 collapse at $37.28. Further consolidation should be allowed for below the 50% retracement of the Q1 fall at $43.86. Above here in due course though should see resistance next at $45.18/50 and then more importantly at $48.74, where the 200-day average is hovering, which we expect to cap the market at least temporarily.”
“Near-term support is seen at $37.18/35.37, the May/June price gap, with $33.62 ideally holding further weakness. Only below $28.86 would see the base negated though.”
“Poor momentum increases the risk $43.86 should continue to cap for now for further consolidation and potentially a deeper setback.”
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