Brent crude retreats, silver faces challenges, copper tests support
Brent crude oil prices retreat from key resistance due to President Trump’s plan to boost US oil and gas production. Meanwhile, silver prices struggle, and copper tests support as the US dollar rises.
Brent crude oil price rejected by major resistance area
The Brent crude oil price recently touched the resistance zone between $80.90 - $81.89 per barrel after a sharp rise since December.
For a confirmed breakout from this sideways trading pattern and a move towards the $90 region, the price would need to rise and close above the mid-August high of $81.89.
While the United States (US) plan to impose a 25% tariff on imports from Canada and Mexico by 1 February is positive for oil prices, President Trump’s announcement of boosting US oil and gas production by declaring a national emergency adds downward pressure on prices.
With resistance firmly at $81.89, a drop below Monday’s low of $78.68 seems more likely. If this happens, expect to see the uptrend line from December to January and the 200-day simple moving average (SMA) between $78.21 - $78.18 tested again. The 8 January high of $77.59 could also come into play.
Brent crude oil daily chart
Silver price struggling to break through downtrend line
The spot silver price is struggling to break through its October to January downtrend line and the 55-day SMA at $30.52 - $30.74 per troy ounce, having come off last week's $30.97 one month high.
Nonetheless the precious metal remains within its January uptrend channels and maintains an overall bullish trajectory.
Overcoming last week's high of $30.97 may bring the mid-November high of $31.53 into focus.
Some support can be found along the 200-day SMA, which sits around $30.03.
A significant drop, moving past the mid-January low of $29.50, could signal a revisit to the August to January support line at $29.10.
Silver daily chart
Copper price probes key support zone
Copper prices recently broke through the $4.26 - $4.33 resistance zone, supported by several past peaks and lows, reaching the next resistance area of $4.45 - $4.49. This range, however, pushed back against copper’s advance last week.
Now the $4.26 - $4.33 zone acts as support, bolstered by the 200-day SMA positioned at $4.29. This foundation helps maintain a medium-term positive trend.
Should copper fall out of this support range, it might revisit the late July 2024 high at $4.22.
Copper daily chart
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