Economists at Société Générale analyze Brent Oil technical outlook.

Overcoming $78/$79 is essential to affirm a meaningful rebound

Brent experienced a fast rebound after hitting $70 in March however the price action has gradually settled below the 50-DMA. Recent attempt at overcoming this MA and a multi-month descending trend line ($78/$79) has failed. 

Daily MACD has remained anchored below the equilibrium line since late April denoting lack of upward momentum. 

Once a break below $70 materializes, next leg of downtrend could take Brent towards December 2021 levels of $65/63 and $57. 

Overcoming $78/79 is essential to affirm a meaningful rebound.