Brent Oil to regain downward momentum on failure at $81 – SocGen

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.