Brent Oil struggles to extend the rally towards 200-DMA at $47.71 – Credit Suisse

Brent Crude established a base a while ago although the rally is struggling near-term with trend resistance from June just below the $45 level capping. Strategists at Credit Suisse maintain a higher bias with the black gold rising to $47.71. 

Key quotes

“We continue to give the upside the benefit of the doubt for now though with resistance seen next at $45.18/50 and then more importantly at the 200-day average at $47.71, which we look to then cap. A direct and closing break can see resistance next at the 61.8% retracement of the Q1 fall at $50.45.” 

“Support at $41.32 now ideally holds to keep the immediate risk higher. Below would warn of a fall back to $37.01, potentially $33.62.”