Brent tests channel top after strong rally – Société Générale

Brent crude’s steep rally faces a key technical test as prices approach major resistance levels, with stretched momentum suggesting a possible near-term pullback, Société Générale's FX analysts note.

Momentum builds, but Brent faces resistance

"Brent has experienced a steep uptrend after breakout from a base. It is now attempting a cross above the upper limit of a descending channel drawn since 2023. The daily MACD histogram is registering multi-month highs, indicating a stretched up-move."

"Next hurdles are located at the January high of $82.40/82.60. In the event that Brent fails to defend recent gap levels near $77.65/77.00, a short-term pullback may take shape."