Brent Crude Oil is breaking higher from a “triangle” continuation pattern. Strategists at Credit Suisse stay bullish with next resistance seen at the $75.60 mark.
“Brent Crude Oil has now finally broken out from a further ‘triangle’ continuation pattern that has been forming since March and is now challenging the key 2019 and 2020 highs at $71.75/95. A weekly close above here would reinforce the existing ‘flag’ and now also ‘triangle’ pattern, whilst also suggesting we are seeing a much larger, longer-term base.”
“We stay bullish for a clear break higher, with resistance above $71.95 seen next at $75.60, above which can reinforce a broader basing story for our original core bull ‘flag’ target at $79.10 and now we think the ‘measured triangle objective’ at $82.50.”
“Bigger picture, above $82.50 can expose the 2018 high at an even more distant $86.74 next, which we expect to cap the market at least temporarily.”
“Only below the distant 63-day average at $66.90 would speak in favor of a trading range to re-emerge, which is not our base case.”
