Brent Oil to reassert bearish downtrend on break below YTD lows around $70 – Credit Suisse

Brent Crude Oil is under heavy pressure after recently rejecting key resistance levels, suggesting a resumption of the downtrend is likely, with next supports at $65.72 and $63.02, analysts at Credit Suisse report.

Key resistance at $86.41/89.37 still expected to cap

“With medium-term momentum still negative and short-term momentum crossing back into outright bearish territory, we look for a break below current year-to-date low at $70.12 imminently, which would open up a move to the major cluster of supports between $65.72 and $63.02 next.”

“Key resistance at the 200-DMA and key highs at $86.41/89.37 is still expected to cap should the market stabilize and turn back higher, but even this is not our base case.”