Brent Oil: Phase of uptrend could extend towards $93 and $96.50/$97.00 – SocGen

Oil price is clearly on the rise. Economists at Société Générale analyze Brent Crude technical outlook. 

200-DMA near $81 expected to be a support near term

Brent has extended its rebound after breakout from a multi-month base and has achieved the objective of $87.50 representing April high. An initial pullback can’t be ruled out however the 200-DMA near $81 is expected to be a support near term. 

Daily MACD has been posting divergence and has crossed above equilibrium line denoting regain of upward momentum. 

Once Brent establishes beyond $87.50, the phase of uptrend could extend towards $93 and $96.50/97.00, the 38.2% retracement from 2022.