Brent Oil: Break below $83.70/83.00 can lead to an extended downtrend – SocGen

Oil prices extend losses after closing below $90/bbl on Friday. A Break under September lows and projections of $83.70/83.00 could deepen the down move, strategists at Société Générale report. 

Inability to reclaim the 50DMA would denote risk of extension in decline

“Brent has once again given up the 50DMA ($92.50) and is approaching the low of September near $83.70/83.00 which is also a projection. This is a potential support zone which can lead to a bounce. However, inability to reclaim the 50-DMA would denote risk of extension in decline.” 

“Break below $83.70/83.00 could deepen the down move towards $77.50, the 50% retracement of the rise since 2020 and $73.00.”