Brent crude oil price rises again while aluminium, silver prices slip
A larger-than-expected drawdown in US crude inventories led to a bullish reversal in the Brent crude oil price while aluminium and silver prices slip.
Brent crude oil price recovers from 1-month low
The Brent crude oil price followed three straight sessions of falling prices with a bullish engulfing pattern on the daily candlestick chart with last week’s high at 85.81 being in focus. The bullish reversal happened following a larger-than-expected drawdown in US crude inventories.
A rise above 85.81 would point towards the last couple of weeks corrective move lower having ended with a rise towards the 90.00 mark being back in the pipeline.
Potential slips should find support along the breached two-week downtrend line at 84.28 and around the late June and 10 July lows at 83.74-to-83.70.
Silver price remains side-lined
The spot silver price continues to trade sideways below its $31.49-to-$31.75 per troy ounce July peaks while remaining above the 55-day simple moving average (SMA) at $29.93.
A rise above the 11 July high at $31.75 is needed for the $32.51 May high to be back on the cards whereas a fall through $29.93 may lead to the May-to-July uptrend line at $29.62 being revisited.
Aluminium price drops to new 3-month low
The aluminium price’s slip through its 2,470 mid-June low is taking it to a new 3-month low with the December-to-January highs at 2,399-to-2,398 representing a possible downside target zone.
Immediate bearish pressure should be maintained while no rise above the last reaction high on the daily candlestick chart, made on 11 July at 2,508, is seen. Resistance below this level can be spotted at the 2,470 mid-June low.
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