Brent Crude Oil to extend the rebound on a move above August peak at $104/105 – SocGen

Brent has staged a steady rebound after approaching downside projections and the multiyear descending trend line at $83.70/83.00. An extended bounce is expected on a break past $104/105, strategists at Société Générale report.

Monthly RSI has developed a positive reversal

“Daily MACD is above its trigger and has recently entered positive territory highlighting regain of upward momentum. August high of $104/105 is expected to be an important hurdle.”

“It is worth noting that monthly RSI has developed a positive reversal – a phenomenon where RSI records a lower trough, but price forms a higher low. This denotes upside potential.”

“If Brent overcomes the hurdle at $104/105, we can expect an extended rebound towards $113 and graphical levels of $123/125. Target for positive reversal is located at $139; this development gets negated in case Brent breaks below $87 (monthly close).”