WTI tops out while silver and Arabica coffee find interim support
Outlook on WTI, silver and Arabica coffee as rapidly rising US yields lead to risk-off sentiment.
WTI slips to near one-month low
WTI is in the process of keeling over from its $94.25 September peak ahead of today’s OPEC+ meeting but needs to fall and close on a daily basis below its late September low at $87.85 for a top to be confirmed. Tuesday’s low at $87.02 is within sight and a fall through it may engage the August peak at $84.39. Minor resistance above the 21 September low at $88.28 comes in at Tuesday’s $89.27 high. While below it, further downside pressure is expected to lower the oil price.
Silver drops to near seven-month low
Friday’s silver bearish reversal off 200- and 55-day simple moving averages (SMA) amid rapidly rising US yields took the precious metal down to $20.69 per troy ounce, to levels last traded in mid-March. As long as this week’s low at $20.69 underpins, a minor bounce towards the mid-March low at $21.46 may ensue. Further up lies key resistance between the June-to-September lows at $22.12 to $22.30. Failure at $20.69 would eye the $20.42 February low and also the psychological $20 mark as well as the March trough at $19.90.
Arabica Coffee finds interim support
Front month Arabica Coffee futures hit a near nine-month low last week amid improved weather in top producer Brazil and dropped to 14,550 before stabilizing. Since Friday’s low at 14,550 has not been accompanied by a lower reading of the Relative Strength Index (RSI) on the daily chart, positive divergence can be made out.
More often than not it leads to at least short-term consolidation in the opposite direction of the prevailing trend, in case of Arabica coffee that is to say down. A rise above Monday’s high at 15,180 could thus put the July low, 55-day simple moving average (SMA) and late August high at 15,506 to 15,764 on the plate. Intraday support can be found between the mid-August to mid-September lows at 14,761 to 14,711. A fall through last week’s low at 14,550 would engage the January low at 14,288, though.
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