Brent tests channel top after strong rally – Société Générale
|Brent crude’s steep rally faces a key technical test as prices approach major resistance levels, with stretched momentum suggesting a possible near-term pullback, Société Générale's FX analysts note.
Momentum builds, but Brent faces resistance
"Brent has experienced a steep uptrend after breakout from a base. It is now attempting a cross above the upper limit of a descending channel drawn since 2023. The daily MACD histogram is registering multi-month highs, indicating a stretched up-move."
"Next hurdles are located at the January high of $82.40/82.60. In the event that Brent fails to defend recent gap levels near $77.65/77.00, a short-term pullback may take shape."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.