Brent Crude Oil has confirmed a base as expected at $37.28 and strategists at Credit Suisse expect some consolidation while below $43.86. A break of this level would open the path towards the 200-day ma at $50.45.
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Key quotes
“Brent Crude has extended its strong recovery as expected from its multi-year price support from the 1990’s and early 2000’s at $16.65/14.53 and has managed to remain above the 38.2% retracement of the Q1 collapse at $37.28, establishing a base.”
“Near-term, consolidation should be allowed for below the 50% retracement at $43.86. Above here in due course though should see resistance next at $45.18/50 and then more importantly at $50.45/99, 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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