Brent Oil to stretch towards 200-DMA at $47.05 – Credit Suisse

Brent Crude Oil is struggling to extend its rally. The black gold is trading around the $45 level and could see a rise towards the 200-DMA at $47.05 which is expected to cap. On the flip side, support is seen at $41.38, strategists at Credit Suisse apprise.

Key quotes

“Brent Crude rally continues to struggle to extend but we continue to give the upside the benefit of the doubt for now though with resistance seen next at the 200-day average at $47.05, 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.”

“Key support remains seen at $41.38/32, removal of which would see a near-term top established to warn of a fall back to $37.01, potentially $33.62.”

“Weekly RSI momentum continues to hold key support for now. Below though would mark an important top.”