Brent crude oil price rally takes a breather while silver, aluminium prices try to find support
The Brent crude oil price encounters technical resistance as silver and aluminium prices try to level out above technical support.
Brent crude oil price rally takes a breather
The Brent crude oil front month futures price, which gained over 7% from last week’s low, encountered the April-to-June downtrend line which acted as resistance on Wednesday. While the contract remains below Wednesday’s 83.12 high, sideways trading around the 82.00 region is expected to ensue.
A rise above 83.12 would put the 200-day simple moving average (SMA) at 83.68 on the cards, ahead of the key 84.32 to 84.72 resistance zone, made up of the early March, 10 of May and 29 May highs.
Potential slips should find support in the 80.88 to 80.25 region.
Silver price remains under pressure
The spot silver price’s decline from its $32.51 per troy ounce May peak, in line with last week’s $100 per troy ounce fall in the gold price due to China’s central bank no longer shoring up its gold reserves with purchases in May, is ongoing with the lower downtrend channel line, 55-day simple moving average (SMA) and February-to-June uptrend line at $28.69 to $28.45 remaining in focus. If reached, this area is likely to, at least in the short-term, act as support.
For a bounce back to gain traction, Wednesday’s high at $29.59 will need to be exceeded, as well as the late May low at $30.04.
Aluminium price tries to find support above May low
The price of aluminium, which dropped from its 2,792 two-year high, is trying to level out above its 2,509 May low by bouncing off its March-to-June uptrend line for a second day in a row.
As long as the 2,509 May low underpins, a bounce towards the 23 May low at 2,587 may ensue whereas a fall through 2,509 could lead to the December high at 2,398 being in view.
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