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Societe Generale analysts noted that Brent crude oil recently broke out of a large consolidation base, surging toward $120 before experiencing a steep correction. The price is currently holding above $81, with an upside gap near $93.80 and the $120 level acting as a critical resistance. Traders are closely monitoring whether the $120 pivot high can be retested, as a successful break above this level could signal renewed bullish momentum, while a failure might trigger further consolidation or a decline. This development is significant for energy-linked markets and traders, as Brent crude serves as a global benchmark for oil prices. A sustained move above $120 could reignite inflationary pressures and impact equity sectors tied to energy production. Conversely, a breakdown below $81 might signal renewed bearish sentiment in commodities. The $120 level is a key technical target, with implications for broader macroeconomic trends and central bank policy considerations. For Gulf and MENA investors, the price action in Brent crude directly affects regional energy revenues and economic stability. The upcoming week will focus on whether the $120 resistance holds and if the $81 support level remains intact. Broader market risks, including geopolitical tensions and OPEC+ policy decisions, could also influence short-term volatility.
