Brent crude oil trades in 10-month, sugar in near 12-year highs while copper stalls
Outlook on Brent crude oil, copper and sugar following OPEC+ output cuts.
Brent crude oil trades in ten-month highs
The price of Brent crude oil has rallied to a ten-month high at $90.97 yesterday as Russia and Saudi Arabia extend their voluntary output cuts until the end of the year.
If overcome, the July 2022 low at $92.43 could be reached next, ahead of the mid-September 2022 high at $95.19. Slips should find support between Tuesday’s low and the mid-August high at $87.92 to $87.83. While this support zone underpins, the oil price remains bid.
Copper price rise stalls on China property market jitters and weak PMIs
Following its recent near 5% advance, the price of copper has been rejected by technical resistance as China’s property market and weak global manufacturing and services PMIs lead to demand jitters which weigh on the metal price.
The fact that copper managed to reach the 200-day simple moving average (SMA) at $8.599 per tonne before being vehemently rejected by it, is technically significant and could indicate that a prolonged sideways movement with a slight bearish bias may unfold. Were the late August and Tuesday’s lows at $8,377 to $8,375 to be slipped through, the 25 August low at $8,323 would be in focus ahead of the 8 August low at $8,278. Resistance is currently seen around the minor psychological $8,500 mark.
Sugar #11 rallies to 12-year high
The price of front month sugar futures has shot up to a near 12-year high with these trading above their 26.81 April peak, at levels last seen in November 2011 as deficient rains lead to concerns about Indian sugar production. Once a daily chart close above the 26.81 level has been made, the 30.00 region would be in focus.
Minor support below the 26.81 to 26.64 April and May highs comes in around the 26.21 June peak. While the last reaction low - last Thursday's low at 25.30 - underpins, the short-term uptrend remains intact. A reaction low is made when the low of a daily candlestick is below that of the day preceding it and the day following it.
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