Brent crude oil, silver slide while sugar approaches 12-year high
Outlook on Brent crude oil, silver and sugar as China’s exports unexpectedly fall.
Brent crude oil price drops on weak
China trade data Brent crude oil continues its decline towards its $83.12 per barrel October low and the early August low and 200-day simple moving average (SMA) at $82.31 to $82.30 as China’s exports unexpectedly fall and paint a subdued picture with regards to global demand. This support zone is expected to hold, at least over the next few days. If not, the August low at $81.68 might be reached as well. Minor resistance above last week’s low at $84.49 can be found at the 25 October low at $85.90. While the next higher high from last Friday at $87.69 caps, downside pressure should continue to dominate.
Silver slips towards the lower end of its sideways trading range
The price of spot silver has been range trading between its last couple of weeks’ extremes at $23.70 and $22.45 per troy ounce with it currently slipping back towards the lower end of its range as the US dollar and US yields retreat. On Friday and Monday the 200-day simple moving average (SMA) at $23.27 acted as resistance with the late October and last week’s lows at $22.55 to $22.45 being back in sight. Below these levels lies strong support between the June-to-mid-September lows at $22.30 to $22.12 which is expected to hold, if reached. Only a currently unexpected bullish reversal above the 200-day SMA at $23.27 would engage the August-to-November tentative downtrend line at $23.40 and perhaps the $23.70 to $23.77 resistance zone, made up of the late September and October highs.
Sugar #11 approaches 12-year high
Front month sugar futures are once more approaching their 12-year high at 27.85 amid concerns about supply as producing countries go through a draught. First, though, the October peak at 27.72 will need to be overcome for further bullish momentum to be seen. Potential slips should find support around the 27.16 early October high ahead of the August-to-November uptrend line at 26.72.
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