Brent: Range trade after sharp oil spike – Societe Generale

💡 DMK Insight

Brent crude’s recent breakout to $120 is significant, but the pullback to $81 raises questions about sustainability. Analysts note that holding above $81 is crucial for maintaining bullish momentum, especially with an upside gap near $93.80. If Brent can reclaim that level, it could signal a renewed rally towards the $120 pivot high. However, the steep pullback suggests volatility is likely, and traders should be cautious. The broader context of supply constraints and geopolitical tensions could amplify price swings, making it essential to monitor these factors closely. Watch for institutional buying patterns, as they could indicate confidence in a rebound. On the flip side, if Brent fails to hold above $81, we might see a deeper correction, potentially testing lower support levels. Keeping an eye on daily chart patterns will be key to navigating this volatility.