Brent crude oil It is gaining momentum to the upside after being in range for months and Credit Suisse strategists see scope for the strength to extend towards $ 60 if the market sees a weekly close above the August high of $ 46.53.
Key takeaways
“Brent crude has risen sharply after maintaining the 38.2% retracement of the entire April / September upward move at $ 34.86 and is now topping its August high of $ 46.53. A weekly close above here would resolve the May-November range to the upside, with resistance below at the 61.8% retracement of the first-quarter decline at $ 50.45, before $ 55.88 and then the 78.6% retracement and February 2020 high at $ 59.82 / 60.00 “.
“While we would expect the $ 60.00 level to prove a tougher barrier, if the force were to extend directly, this may expose the $ 71.75 high for the year.”
“The $ 42.63 support is now ideally held to keep immediate risk high. Next, we see that the market remains in a trading range, clearing the way for a drop to the 200-day average at $ 39.47. “
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