Brent Crude Oil maintains its break above the 2019 and 2020 highs. Although overextended near-term, strategists at Credit Suisse continue to see the broader risk higher and look for an eventual move above $80.
See – Three scenarios for OPEC+ following collapse in talks – ABN Amro
“Brent Oil completed a bullish ‘triangle’ continuation pattern in Q2, which had been forming since March as well as breaking the key 2019 and 2020 highs at $71.75/95, hence reinforcing the existing bull ‘flag’ whilst also suggesting we are seeing a much larger, longer-term base.”
“We stay bullish with resistance seen next at our original bull ‘flag’ target at $79.10, then the aforementioned ‘measured triangle objective’ at $82.50.”
“Bigger picture, above $82.50 can expose the 2018 high at even more distant $86.74 next, which we expect to cap the market at least temporarily.”
“Only below the distant 63-day average at $70 would speak in favor of a trading range to re-emerge, which is not our base case.”
