Brent is now close to the upper band of the wedge pattern near $89/90. A move above here is needed to extend the race higher, strategists at Société Générale report.
Downside momentum ebbing
“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.”
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