Brent crude oil price slips, silver price stabilises while wheat price stays bid
Brent crude oil price slips, silver price stabilises while wheat price stays bid amid empty economic calendar but for US API crude oil inventories.
Brent crude oil price remains under pressure
Brent crude oil futures’ prices continue to slide despite trading at levels last seen in June 2023. Reasons for the weakness are concerns about slowing economic growth in the world's biggest economies, the USA, China and Europe, while there is ample supply.
Below this week’s 70.51 low lie the March 2022 trough at 70.09 and the psychological 70.00 region which may once again offer support. If not, the December 2021 low at 69.30 could be back in sight, ahead of the mid-May, August and November 2021 lows at 65.74-to-64.52.
Minor resistance remains to be seen between the 5 and 21 August lows at 74.97-to-75.24 on the front month futures contract.
Spot silver price bounces off support
The spot silver price has found support in the $27.70-to$27.69 per troy ounce zone last and again this week and is on track to revisit the mid- to late June lows at $28.58-to-$28.66 as well as the 22 August low at $28.78. Further up meanders the 55-day simple moving average (SMA) at $26.07 and lies Thursday’s $29.17 peak. These would need to be exceeded on a daily chart closing basis for the July-to-September resistance line at $29.64 to be back in the picture.
Were this week’s low at $27.69 to give way, though, the 200-day SMA at $26.49 and the August low at $26.46 would be in focus.
US wheat
US wheat futures prices ended their six consecutive days of gains from their 521 August low at last week’s high, made around the 584 mark. Since then a minor slip to Monday’s 564 low has been seen before wheat prices resumed their advance.
A rise above the 584 high would likely engage the 200-day SMA at 592 and the July high at 596. There the recent uptrend may run out of steam, however, as it represents resistance.
Below this week’s low at 564, made within the mid-July to mid-August highs at 565-to-564, the 55-day SMA can be spotted at 557.
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