Brent Crude Oil: Next potential hurdle is located at the falling 200-DMA near $90 – SocGen

Crude oil prices opened with a significant bullish gap. Brent Oil could test the $90 level, economists at Société Générale report. 

Downtrend could resume on failure to hold support at $79

“Brent has gapped up above the trend line drawn since March 2022 and has extended the bounce towards February/March peaks of $87. Next potential hurdle is located at the falling 200-DMA near $90, it has failed to reclaim this MA since last September.” 

“It would be interesting to see if Brent can hold above recent gap levels at $79. In case it establishes below this support, the downtrend could resume.”