Brent Crude Oil is currently trading in the mid-44.00 level and strategists at Credit Suisse expect the black gold to continue its recovery towards the 200-DMA at $48.13 where it is thought to stop.
Key quotes
“Brent Crude established a base a while ago and above the 50% retracement of the Q1 fall at $43.86 should end the recent consolidation for a resumption of the recovery. We see resistance next at $45.18/50 and then more importantly at $48.13/19, where the 200-day average is hovering, which we expect to cap the market at least temporarily. A direct and closing break can see resistance next at the 61.8% retracement of the Q1 fall at $50.45.”
“Support at $39.47 now ideally holds to keep the immediate risk higher. Below would warn of a fall back to $37.01, potentially $33.62.”
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