Brent crude’s inability to hold above the key $71 mark is reviving bearish sentiment, with technicals pointing to deeper losses if support at $63 gives way, Société Générale’s FX analysts note.
Repeated $71 tesistance test signals renewed weakness in Brent
“Brent once again failed to establish itself above the 200-DMA (currently at $71) earlier this month and has since breached a short-term ascending trend line, highlighting a renewed downward momentum.”
“Notably, previous failed attempts to cross this moving average have eventually led to extended declines. Continued inability to overcome the 200-DMA near $71 could result in further downside. The next support levels are located at the June low of $63.30/63.00, followed by $58.40.”
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