Brent has staged an initial bounce after forming interim low near $70 earlier this month. But it could test this level again on failure to defend December trough of $75, strategists at Société Générale report.

Signals of a meaningful uptrend are not yet visible

“Daily MACD has started posting positive divergence however signals of a meaningful uptrend are not yet visible.”

“Trend line drawn since March 2022 at $83/84 which is also the 50-DMA is a short-term hurdle.” 

“If Brent fails to defend December trough of $75, next leg of downtrend is likely to materialize towards $70 and $65/63, the 61.8% retracement of whole uptrend during 2020/2022.”