Technical Analysis

Société Générale says Brent oil needs to reclaim $90 to solidify uptrend


A snippet on oil from Société Générale, looking at Brent:

  • 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.

The below is my chart, trying to duplicate what SG is referring to. I’ve added the MACD , using default settings. I am not sure of the falling wedge that SG is referring to though.

I may be wrong and, of course, let me know in the comments your thoughts! The chart is from our site and is available here. The code is ‘UKOIL’.

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