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Brent Crude Oil is gaining upward momentum after having been rangebound for months and strategists at Credit Suisse see scope for strength to extend towards $60 should the market see a weekly close above the $46.53 August high.

Key quotes

“Brent Crude has pushed strongly higher after holding the 38.2% retracement of the whole April/September upmove at $34.86 and is now pushing above its $46.53 August high. A weekly close above here would resolve the May-November range higher, with resistance seen next at the 61.8% retracement of the Q1 fall at $50.45, ahead of $55.88 and then the 78.6% retracement and February 2020 high at $59.82/60.00.”

“Whilst we would expect the $60.00 mark to prove a tougher barrier, should strength directly extend, this can expose the $71.75 high for the year.”

“Support at $42.63 now ideally holds to keep the immediate risk higher. Below would suggest the market remains in a trading range, clearing the way for a fall back to the 200-day average at $39.47.”