Brent crude is stabilizing after last month’s trough near $60, but a break above key resistance is needed to confirm a sustained rebound, Société Générale’s FX analysts note.
Interim low at $60.10 holds for now
“Brent struggled to overcome the 200-DMA in September resulting in a steady decline. It has carved out an interim trough at $60.10 last month. The down move has stalled however a move beyond recent pivot high and the moving average near $66.80/67.50 would be crucial for confirming an extended rebound.”
“If Brent fails to overcome this hurdle, the phase of decline could persist. Break below $60.10 may lead to a deeper down move towards April / May lows of $58.40.”