Brent Crude Oil: $81.80 could be next crucial support if pullback deepens below $85/$84.60 – SocGen

Economists at Société Générale analyze Oil’s outlook after the slide in Brent Crude. 

An initial bounce is expected

Brent has experienced a sharp pullback after facing stiff resistance at low of March near $96.50/$97.00. It has breached the lower band of a multi month channel and interestingly it has re-integrated within previous multi month base. $85/84.60, the 50% retracement from June is next support.

An initial bounce is expected. However recent gap at $93.35 must be overcome to affirm a larger up move.

If pullback deepens below $85/$84.60, the 200-DMA and recent pivot low near $81.80 could be next crucial support.