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Brent Crude Oil maintains its base formed at $37.28 and in the opinion of the Credit Suisse analyst team the black gold should head towards the $50.10 level which is expected to cap. 

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.” 

“Further consolidation should be allowed for below the 50% retracement of the Q1 fall at $43.86. Above here in due course though should see resistance next at $45.18/50 and then more importantly at $50.10, 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.”