BRENT OIL TO REGAIN DOWNWARD MOMENTUM ON FAILURE AT $81 – SOCGEN

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Brent is inching towards first resistance at $81. Economists at Société Générale analyze the technical outlook.


Recent peak at $86/87 remains a key resistance zone

Daily MACD has started posting positive divergence however signals of trend reversal are not yet visible. Recent peak at $86/87 remains a key resistance zone.  


Shorter-term, Brent has experienced a steady bounce since last week and is now challenging the 50-DMA. It is approaching a multi-month descending trend line at $81. If ongoing rebound falters near this level, the downward momentum could regain. 


Break below $70 would confirm one more leg of downtrend; next potential objectives are located at December 2021 low of $65/63 and $57

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