Brent Oil: Failure to cross $84 could mean one more leg of decline – SocGen

Oil prices have recovered from the lows. Economists at Société Générale analyze Brent’s outlook.

Overcoming recent pivot high near $84 essential for confirming an extended rebound

Brent decline has stalled near the lower limit of a multi month channel at $76.60 which is also the 76.4% retracement from March. A short-term bounce has led it towards the 200-DMA. Flattish slope of the MA denotes lack of clear direction. 

Overcoming recent pivot high near $84 would be essential for confirming an extended rebound. Failure to cross could mean one more leg of decline towards $76.60 and perhaps even towards next projections at $74.10/$73.30.