Brent Crude Oil forms a base, important resistance seen at $50.50 – Credit Suisse

Brent Crude Oil remains above the 38.2% retracement of the Q1 collapse at $37.28, establishing a base, and strategists at Credit Suisse expect the black gold to trade higher.  

Key quotes

“Near-term, 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 $50.50, 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.”