Brent broke below a multi-year rising trend line, signaling the risk of a deeper fall, market analysts at Société Generale say.
Oil price could fall towards $70.00
“Brent struggled to reclaim the 50-day moving average in the recent rebound attempt and has now broken below a multi-year ascending trend line, denoting the risk of a deeper decline. The daily MACD is at a higher level than last month, but signs of a significant rebound are yet to be seen.”
“The August low near $75/$75.65 is the first layer of resistance. Failure to overcome this could mean continued downside movement towards the December low of $72.30 and perhaps even towards $70.00. Brent crude’s drop below $74/bbl is disinflationary and follows reports that OPEC could add around 180k bpd of supply within weeks.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
