Brent rebounds off $58.40 channel base – Société Générale

Brent crude has bounced from the lower limit of its downtrend but faces key resistance at $68.70–$70.50. A failure to break higher could trigger a pullback, with $65.30 and $62.30 as key support levels, Société Générale's FX analysts note.

Support at $65.30 is key for short-term outlook

"Brent has staged a rebound after probing the lower limit of a descending channel drawn since 2023 at $58.40. The upside has so far remained contained at graphical levels of $68.70/70.50 representing lows of last year and the 50-DMA."

"This is an interim resistance zone. If the bounce peters out near this hurdle, a short-term pullback can’t be ruled out. Recent pivot low of $65.30 is first support. Break below this can result in a deeper pullback towards $62.30 and recent trough at $58.40."