Brent: Watching support at 84/83 dollars – Societe Generale

Societe Generale analysts highlight that Brent has pulled back after testing resistance at $95, a level defined by a prior downside gap and a descending trend line from April. Prices are drifting toward the $84/83 area, where the 50-DMA and 200-DMA converge, seen as potential support, with failure to hold above that zone risking a deeper decline despite possible interim bounces.

Pullback tests moving average support

"Brent has retraced after reaching the hurdle at $95, which represents the previous downside gap and the descending trend line drawn from April."

"It is now drifting toward the confluence of the 50-DMA and the 200-DMA around $84/83, which could be a potential support."

"A brief bounce cannot be ruled out; however, overcoming the resistance near $95 will be crucial for confirming a larger uptrend."

"There would be a risk of a deeper decline if Brent fails to hold above $84/83."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)