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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Brent, silver capped by resistance as sugar price rush subsides

Brent, silver capped by technical resistance as sugar price rush subsides due to loss of upside momentum.

Oil Source: Adobe images

Brent crude oil price sidelined below resistance

The recent over 6% rise in the Brent crude oil futures’ price from its early September low on heightened tensions in the Middle East stalled below the 5 and 21 August lows at 74.97-75.24 which should act as resistance.

If overcome, the July to September downtrend line at 76.60 may be reached next.

As long as the 74.97-75.24 resistance zone caps, though, further range trading is on the cards.

Only a fall through Monday’s 72.53 low could lead to a retest of the 70.00 region.

Brent crude oil daily chart Source: IT-Finance.com
Brent crude oil daily chart Source: IT-Finance.com

Spot silver price range trades in two-month highs

The spot silver price’s over 11% rally from its early September low has taken it to Friday’s $31.43 per troy ounce high below which it has been trading since. Were this level to be exceeded, the 10 June high at $31.55 and July peak at $31.75 would be next in line. Further up sits the May peak at $32.51.

A fall through the accelerated uptrend line and Monday’s low at $30.36 would likely engage last week’s low at $29.71, though. While it underpins, short-term upside pressure should persist.

Silver daily chart Source: IT-Finance.com
Silver daily chart Source: IT-Finance.com

Sugar price trades in seven-month highs

The price of sugar has risen by over 21% to a seven-month high from its 10 September low as Brazil’s drought and fires tighten global supply. The front month futures contract rallied to 23.11, a level last traded in February.

Upside momentum seems to be slowing down but were a further advance to unfold, the January and February highs at 23.71-23.86 would be targeted but may then cap.

Potential slips may find support around the mid-March high at 22.21 and the 22 February low at 21.57.

Major support can now be found between the July and August peaks at 20.79-20.11. It is also where the 200-day simple moving average (SMA) can be found.

Sugar daily chart Source: IT-Finance.com
Sugar daily chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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