Brent crude price and silver price struggle but Cocoa price rallies
While both Brent and silver have fallen in early trading, cocoa prices are enjoying renewed strength.
Brent under pressure
This week has seen the Brent crude oil price rally to $76.00 but fail to hold these highs.
A lower open today could be the start of a lower high that marks the beginning of the next downside leg. Gains in late October also failed to hold $76.00, so this appears to be the line in the sand for now. Further losses target the $70.00 zone, which marked support at the end of September and also in late October.
A close back above $76.00 negates this view and could see further strength in the direction of the October highs around $80.00.
Silver on the back foot
The spot silver price rallied on Thursday after Wednesday’s slump, but the sellers have taken hold once again.
This has muddied the waters for those hoping for a higher low after the pullback from the October highs. For a bullish view to emerge, we would need to see a higher close today, which might then put the price back on course to the highs of October.
Alternately, further losses target the $30.00 level, which the price neared in early October.
London cocoa surges
The surge from the lows of late October has received a fresh boost this morning, taking the London cocoa price to its highest level in three weeks.
Gains in October stalled below 5700, so a close above here would help to bolster the short-term bullish view. Nonetheless, with the price operating below the 50- and 100-day simple moving averages, the overall view continues to lean bearish. For the moment however, the sellers appear to have ceded control.
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
