Brent targets $116-$127 as Societe Generale flags technical breakout
Societe Generale says Brent crude has broken above its recent trading range after holding its 50-day moving average, pointing to a resumed uptrend with technical targets at $116/$119 and $127 a barrel.
The bank’s analysts said the break above the upper boundary of the consolidation range signals that the broader upward trend is back in force and could extend further from current levels.
They pointed to this week’s low near $106 a barrel as a likely support zone if prices pull back in the short term before resuming higher. Beyond that, the next chart-based objectives sit at $116/$119, with a further projection at $127.
As one analyst at the bank put it, the recent price action “suggests that the uptrend has resumed and may extend further.”
The call is purely technical, based on price patterns and moving averages rather than a specific supply or demand catalyst.
For markets, a sustained move higher in Brent crude would matter for energy-linked currencies such as the Canadian dollar and Norwegian krone, for inflation expectations that feed into central bank rate decisions, and for energy and transport stocks sensitive to input costs.
Sources: FXStreet; FXStreet; OilPrice.com