Brent crude has bounced from the lower boundary of its downtrend but is now encountering significant resistance between $68.70 and $70.50. Should the price fail to break through this range, a pullback could be triggered, with key support levels at $65.30 and $62.30, according to Société Générale’s FX analysts.
Key Resistance and Potential Pullback
After testing the lower limit of its descending channel at $58.40, Brent crude has seen a rebound. However, the upside momentum has thus far been capped by resistance levels at $68.70 and $70.50, which coincide with last year’s lows and the 50-day moving average (DMA).
This resistance zone remains a crucial hurdle. If the rebound loses momentum around these levels, a short-term pullback is likely. The first support level to watch is $65.30, which could trigger a deeper pullback if breached. Should prices fall below this, further downside could extend toward $62.30 and potentially revisit the recent trough at $58.40.