Brent crude oil, gold and aluminium prices push higher
Outlook on Brent crude oil, gold and aluminium during China Lunar New year.
Brent crude oil test key resistance on demand optimism
Brent crude oil is once again trying to break through its key $87.99 to $89.35 resistance zone, made up of the mid-October low and December high, on hopes that China’s reopening will lead to the world’s largest importer needing more oil.
Last week’s comments by the World Bank, World Economic Forum, and major US companies warning of a potential slowdown and recession this year seem to have been put aside for now.
A rise and daily chart close above the $89.35 early December high would indicate that a technical bottom has been formed with the October and November highs as well as the 200-day simple moving average (SMA) at $96.91 to $99.60 representing probable upside targets.
Support can be spotted along the January support line at $86.32, the 55-day SMA at $84.80 and at the 19 January low at $83.98. While the latter underpins on a daily chart closing basis, the odds favour a break of the key resistance zone and an ensuing further advance in the price of crude oil.
Gold trades in new nine-month highs
The price of gold rose to a new nine-month high at $1,942 per troy ounce earlier today with the $1,959 January 2021 peak representing the next upside target while on its way to the April 2022 peak at $1,998 and the psychological $2,000 mark.
These levels remain in focus as long as the 18 January low at $1,897 and the March 2022 lows at $1,896 to $1,891 aren’t being slipped through.
Above these levels the January support line can be seen at $1,918 and Monday’s low at $1,912.
Aluminium tries to regain its seven-month highs
Aluminium's swift January advance on expectations that China’s reopening will lead to higher demand for the metal has so far taken it to a seven-month high at $2,678 per metric ton which is back in focus now that it has recovered from last week’s minor corrective low at $2,555.
Above $2,678 beckons the May 2022 low at $2,698. The fact that the metal last week retested and then bounced off its $2,576 December peak is technically significant and means that a long-term bottom has most likely been formed which could lead to further steep price rises taking the aluminium price to $3,000.
Slips through the steep January uptrend line at $2,625 should find support in the $2,576 to $2,555 region with further support being spotted along the 200-day SMA at $2,511.
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