Brent crude has a new resistance of $80-85/bbl levels: CLSA

Crude oil prices have cooled off from their three-digit figures and CLSA expects the new resistance at USD 80-85 per barrel on Brent.

“We saw a break below USD 85 per bbl - that had been the floor for Brent, over the past six months - that break down, basically gives a downside target towards the USD 65-67 per bbl area. So going back to the December and April 2021 lows, and USD 85-88 per bbl now becomes the new resistance area for Brent,” said GLobal Technical Analyst, CLSA.

Crude oil prices rose on Friday but remained below the $80 mark, not far away from December 2021 lows. Brent crude futures rose 0.8 percent to $76.8 per barrel at the last count. WTI futures too rose and were trading 0.8 percent higher at $72.1 per barrel at the last count.

Balanco is quite bullish on the equity markets but he says that this is a bear market rally that continues in the US and things could perhaps get worse. The investment group also expects Nifty to hit 20,180 by January or February of 2023.