Brent breached below a multi-year ascending trend line denoting risk of deeper decline, Société Generale market analysts note.
Oil price may fall towards $70.00
“Brent struggled to reclaim the 50-DMA in recent rebound attempt and has now breached below a multi-year ascending trend line denoting risk of deeper decline. Daily MACD is at a higher level than last month, but signals of a meaningful rebound are not yet visible.”
“August trough near $75/75.65 is first layer of resistance. Inability to cross this could mean persistence in down move towards December low of $72.30 and perhaps even towards $70.00. The decline in Brent crude to below $74/bbl is disinflationary and follows reports that OPEC may add about 180k bpd of supply within weeks.
Source: https://www.fxstreet.com/news/oil-opec-may-add-to-supply-within-weeks-societe-generale-202409041115