WTI stalls while silver falls with orange juice expected to do so as well
Outlook on WTI, silver and orange juice futures as US traders return from their Labor Day holiday.
WTI stalls at ten-month high
WTI’s 10% rally over the past couple of weeks on tighter supply and increased optimism surrounding China’s stimuli has taken it to $85.73 per barrel current September high. Below this level the oil price currently struggles to rise further still as China's services sector expands at its weakest pace in eight months.
A rise above $85.73 would engage the 11 November 2022 high at $89.39 ahead of the psychological $90 region. Support can now be seen at the $84.39 August peak.
Silver on track for fifth consecutive day of decline
Silver’s bearish reversal off its $25.01 August peak has swiftly taken it back down towards the 55-day simple moving average (SMA) at $23.62. Below it lurks the 200-day SMA at $23.46 which is also likely to be hit as the precious metal remains on track for its fifth consecutive day of decline.
Were the 200-day SMA to give way, the early July high at $23.30 could be reached as well. A potential bounce is expected to encounter minor resistance around the 25 August low at $23.92 and also the 27 July low at $24.04.
Orange juice futures come off their recent all-time highs
Last week front month orange juice futures shot up close to their August all-time high as hurricane Idalia and the spread of an incurable disease pushed prices higher. With overall orange juice production in the US hitting its lowest levels in the past century, front month orange juice futures have twice risen to the $332 region per 15,000 Lbs. during August before slipping back to the July high at $310.75 which offered support.
Were it and the July-to-September uptrend line to give way, the 22 August low at $305.94 would be eyed, together with the $330 region. Such a bearish reversal scenario looks likely as last week’s bearish engulfing pattern on the daily candlestick chart points to, at least in the short-term, lower prices. The August low at $287.23 may also be in reached.
Only a currently unexpected rise and daily chart close above the August peaks at $332.12 to $332.67 would push the $350 mark to the fore.
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