Brent crude oil and silver stabilise while copper attacks resistance
Outlook on Brent crude oil, silver and copper as investors mull over economic and monetary backdrop.
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Brent crude oil drops towards May lows
The price of Brent crude oil fell by over 7.5% from its 5 June high over potential US recession concerns, lacklustre Chinese demand and rising Russian supply which outweighs Saudi Arabia’s planned output cuts. The March-to-June support line at $71.78 has been retested but has so far held with even a minor recovery rally being seen on Tuesday. Below Monday’s $71.58 low lie the early and late May lows at $71.51 to $71.40, a fall through which would target the March low at $70.09. Resistance can now be found between the mid-May low and last Thursday’s low at $73.37 to $73.56.
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Silver range trades in low volatility
The silver price remains below its two-month downtrend line and 55-day simple moving average (SMA) at $24.40 to $24.42 ahead of today’s key US inflation data release. These levels lie marginally below the $24.50 to $24.52 resistance area which consists of the late April low and current June high. Minor support can be spotted at the early June high at $24.02 and also at Monday’s $23.88 low.
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Copper drives into technical resistance
For the past week or so, the price of copper has been capped by the 200-day simple moving average (SMA) at $8,385 per ton as investors grapple with the global economic outlook in an environment of ongoing monetary tightening. On Tuesday the 200-day SMA is being retested, though, above which last week’s high can be seen at $8,450. If exceeded, the 55-day simple moving average (SMA) at $8,557 could be back in the picture. While last Thursday’s low at $8,247 underpins, further upside remains in store.
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