Brent Oil Could Deepen The Downward Move Even More

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 50 DMA would denote risk of extension in decline

“Brent has once again given up the 50 DMA ($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.”