Brent crude oil and gold consolidate at elevated levels while Arabica coffee nears resistance
Outlook on Brent crude oil, gold and Arabica coffee amid flight-to-safety US dollar appreciation.
Brent crude oil capped by resistance
Brent crude oil, which rallied by over 7% since the Israel/Hamas conflict began, has over the past couple of days been capped by the breached June-to-October uptrend line which, because of inverse polarity, now acts as a resistance line at $90.49 per barrel. While remaining below it, a further slide may take the price of oil back down to the 55-day simple moving average (SMA) at $88.05. Further down lies the August peak at $87.83. Were tensions in the Middle east to flare up, the oil price may rise above this week’s $90.49 high, which incidentally ties in with the late September low, and could rise towards the $94.97 to $95.33 mid- to late September highs.
Gold consolidates below last week’s $1,933 high
Gold’s over 5% rally following the Israel-Gaza conflict took it to $1,933 per troy ounce on Friday below which it has been consolidating in a low volatility range this week. The 200-day simple moving average (SMA) at $1,930 also represents resistance in this vicinity. A rise above the $1,930 to $1,933 resistance area would put the September highs at $1,947 to $1,953 on the cards whereas a fall through Monday’s $1,909 Harami candlestick low would eye the 55-day simple moving average (SMA) at $1,904 as well as the $1,901 mid-September low. Below it lies more important support between the June and August lows at $1,893 to $1,885.
Arabica Coffee nears resistance
Front month Arabica Coffee futures hit a ten-month low at 14,444 amid improved weather conditions in top producer Brazil before beginning to rise last Wednesday and so far reaching a high at 15,598 on Monday. Next up is the June-to-October downtrend line at 15,690, a break through which would put the 16,474 September peak back on the map. Slips should find support between the 55-day simple moving average (SMA) at 16,363 and the early October high at 15,180. Further support can be found between the mid-August to mid-September lows at 14,761 to 14,711.
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