Strategists at Credit Suisse maintain a higher bias on Brent Crude Oil post the current consolidation as a break above $43.86 should head the black gold to the 200-day ma at $49.43.
“Brent Crude extends its near-term consolidation and maintains its base above the 38.2% retracement of the Q1 collapse at $37.28, establishing a base. Further consolidation should be allowed for below the 50% retracement of the Q1 fall at $43.86.
“Above $43.86 in due course though should see resistance next at $45.18/50 and then more importantly at $49.43, 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 now ideally holding further weakness. Only below $28.86 would see the base negated though.”
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