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Brent Crude Oil has completed a bear “wedge” after rejecting its 200-day average and strategists at Credit Suisse expect further weakness early in the fourth quarter.

Key quotes

“Brent Crude failed to break through its 200-day average, confirming a bear ‘wedge’ pattern to turn the risk lower. The next key supports below $39.32/30 can be identified at $37.18/35.37, the recent May/June gap, before the 38.2% retracement of the whole April/September upmove at $34.86. Whilst we would look for an attempt to hold here, a direct break can see support next at $31.25.” 

“Only a closing break above a distant $46.53 would negate the ‘wedge’ with resistance seen next at the 61.8% retracement of the Q1 fall at $50.45.”