Brent Oil: Break below $70 could accelerate decline to $65/63 – SocGen

Brent downtrend has stalled after forming an interim trough near $70 in March. Economists at Société Générale analyze Brent Crude Oil technical outlook.

$81 must be overcome to affirm a meaningful rebound

Daily MACD has started posting positive divergence however signals of trend reversal are not yet visible. Recent bounce has remained contained near the 50-DMA. Multi-month down sloping trend line at $81 must be overcome to affirm a meaningful rebound.  

Once a break below $70 materializes, Brent would confirm one more leg of downtrend; next potential objectives are located at December 2021 low of $65/63 and $57.