Gold, Brent crude and lumber likely to remain under pressure despite short-term rise
Gold, Brent crude and lumber expected to continue their trend lower, with short-term upside unlikely to last.
Gold attempts to regain ground, but downtrend holds
Gold is on the front foot today, with the precious metal currently on track to form a bullish engulfing pattern.
This could signal the potential for a renewed period of upside like that seen in late September, bringing price back towards trendline resistance.
However, any near-term upside looks to be a fresh selling opportunity, with a bearish trend remaining in play until price breaks the pattern of lower highs.
With that in mind, watch for further downside, with a rise through the $1729 swing-high required to bring about a more positive outlook for gold.
Brent crude indecision holds, with early gains highlighting resurgence possibility
Brent Crude is on the front foot this morning, with price turning upward from an ascending trendline that has dominated this week thus far.
With recession fears denting the demand outlook, we have seen price come under pressure over recent months. However, the actions of OPEC+ do highlight the potential for a move higher once the US stop drawing down the SPR.
For now, we are awaiting the resolution to the US mid-term election, with any sign of reversing this policy likely to bring upside for crude.
We would need to see price rise through the $97.94 level to bring greater confidence that the bulls are going to come back into prominence.
Conversely, a move back below $87.98 would signal a continuation of this recent bearish phase.
Lumber continues to trend lower
LB has continued its decline, with price heading lower since the rise into the confluence of 76.4% Fibonacci and 100-day simple moving average (SMA) resistance.
The wider bearish trend continues to signal weakness for the pair, with the break below $460 signalling the potential for another move into the $415 lows seen back in late-September.
A move up through the $578 swing-high would signal the end of this current downtrend, with the bearish trend expected to continue until we see that upside break.
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