Brent Oil to embark on an extended rebound on a break past $83.65 – SocGen

Economists at Société Générale analyze Brent Oil technical outlook.

Crucial support zone aligns at $78/77

Brent defended the low of March near $70 and evolved within a small base. It has given a break above the upper limit and in recent brief pullback, it has successfully held on to that band near $78/77. 

A revisit of the 200-DMA can’t be ruled out. $83.65, the 76.4% retracement of last wave of pullback is a potential hurdle. If this is overcome, Brent is expected to embark on an extended rebound towards April high of $87.50. 

Low formed last week near $78/77 is crucial support zone.