Brent Oil: Reclaiming $89/90 is essential to affirm an extended up-move – SocGen

Brent is now close to the upper band of the wedge pattern near $89/90. A move above here is needed to extend the race higher, strategists at Société Générale report.

Downside momentum ebbing

“A falling wedge generally denotes receding downward momentum; this is also highlighted by daily MACD which held on to last July’s lows and has entered positive territory. However, reclaiming the upper limit of the wedge at $89/90 is essential to affirm an extended up-move towards $94 and graphical levels of $98/100.” 

“If Brent is unable to defend the 50DMA near $84, the down move is likely to resume. Next potential supports could be at low of December at $75.10 and projections of $73/72.”