Brent Oil resumes its core bear trend – Credit Suisse

Brent Crude Oil below $41.38/32 has completed a bear “wedge”. Strategists at Credit Suisse expect the black gold to suffer further falls with a critical area identified at the recent May/June gap of $37.18/35.37.

Key quotes

“Brent Crude has failed to break through its 200-day average at $45.10 and has now confirmed a bear ‘wedge’ pattern as it dropped below $41.38/32, hence turning the risks significantly lower on a 1-3 month investment horizon. Next key supports can be identified at $37.18/35.37, the recent May/June gap, before the 38.2% retracement of the whole April/September upmove at $34.87/33.54.”

“Only a direct and closing break above a distant $46.53 can curtail thoughts of a potential ‘wedge’ with resistance seen next at the 61.8% retracement of the Q1 fall at $50.45.”