Brent Oil nosedives toward critical support at the $73.00 200-DMA – SocGen

Brent Oil has embarked on a phase of pullback after retesting 2018 high of $86.70. On Friday, Brent is down more than 5% and has already pierced the $77.80/50 support. $75.60 is next and the 200-day moving average (DMA) at $73.00 is critical, according to strategists at Société Générale.

Brent looks poised to head lower towards $75.60

“MACD indicator is below its trigger within negative territory denoting prevalence of downward momentum.”

“Holding below last week's peak of $83.00, Brent looks poised to head lower towards $77.80/77.50 and perhaps even towards $75.60.”

“The 200-DMA near $73.00 could be a crucial support.”