Brent Oil: Trend to turn bullish on a weekly close above $89.37 – Credit Suisse

Brent Crude Oil has finally seen a concerted move higher. Economists at Credit Suisse analyze the technical outlook.

Trend can remain seen sideways whilst $87.49/$89.37 caps

Whilst capped at $87.49/$89.37, the core trend can remain seen sideways, with a break of support at $83.32/$82.36 seen needed to add weight to this view to mark a top at the upper end of this range.

A weekly close above $89.37 would see an important base established to suggest the core trend has turned bullish. We would then see resistance initially at the 38.2% retracement of the 2022/2023 downtrend at $96.48. Whilst we would look for this to cap at first, the ‘measured objective’ from the base would be seen set significantly higher and we would thus be alert to a break in due course for resistance next at $99.56, then the 50% retracement at $104.63.