Brent crude oil drops on huge stock build, gold rallies further and Arabica coffee bounces off ten-month low
Outlook on Brent crude oil, gold and Arabica coffee as US dollar retreats.
Brent crude oil tries to close price gap
Brent crude oil, which rallied by over 3.5% on Monday on heightened Middle East tensions, did partially close this week’s price gap with Monday’s high at $84.54 per barrel on large US stock build. According to the EIA, US crude oil inventories increased by a huge 12.94 million barrels last week, exceeding forecasts of a 1.3 million barrel build. The price gap may still fully be closed but before this happens Tuesday’s low at $86.34 may be reached. Above it meanders the 55-day simple moving average (SMA) at $87.81 and sits the August high at $87.83. While Monday’s high at $88.46 isn’t bettered, the overall skew for the oil price remains bearish.
Gold approaches $1,885 to $1,893 per troy ounce resistance area
Gold’s rally following the Israel-Gaza conflict is fast approaching the August per troy ounce low at $1,885 which, together with the $1,893 June low, is expected to act as resistance. Further up sits the mid-September low at $1,901. Minor support can now be found at Tuesday’s $1,865 high. Only if a currently unexpected fall through Monday’s low at $1,845 were to be seen, could the gap with Friday’s high at $1,835 at least partially get filled.
Arabica Coffee bounces off support
Front month Arabica Coffee futures hit a ten-month low at 14,444 amid improved weather conditions in top producer Brazil before bouncing back on Wednesday. Since the low at 14,444 has not been accompanied by a lower reading of the Relative Strength Index (RSI) on the daily chart, positive divergence can be seen. More often than not it leads to at least short-term consolidation in the opposite direction of the prevailing trend which in case of Arabica coffee is a downtrend.
A rise above Wednesday’s high at 14,884 would eye the early October high at 15,180. If overcome on a daily chart closing basis, at least an interim bottoming formation will have been confirmed with the July low, 55-day simple moving average (SMA) and late August high at 15,408 to 15,764 then being in focus. Intraday support can be found between the mid-August to mid-September lows at 14,761 to 14,711.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
