Oil and aluminium rise on Russian sanctions supply worries
Brent crude oil and aluminium pared some of this week’s losses as traders worry about the impact of Russian sanctions on supply.
Brent’s bounce off its four-month uptrend line has further to go
Brent crude oil’s recovery from it four-month uptrend line at $96.61 is approaching the 4 March $109.02 low as traders worry about potential supply shortages stemming from sanctions on Russia.
Together with the 11 March high at $112.29 it may, however, cap the recent bounce today. If not, the 3 March high at $119.06 would be back in focus.
Minor support below the 9 March low at $104.25 is seen at the 24 February high at $102.58 as well as around the minor psychological $100 mark.
Aluminium recovers on back of renewed supply worries
IG’s Aluminium Daily Financial Bet (DFB), having risen by over 40% since the beginning of the year when it made its early March high at 4,077, has since given back half of its gains before bouncing off its four-month uptrend line as traders worry about potential supply issues caused by sanctions on Russia.
Russia is the second largest exporter of raw aluminium in the world with the metal being among the country’s top ten exported products.
The recovery from this week’s low at 3,223 nears the 3,286 to 3,525 resistance zone which comprises the 24 and 28 February as well as the 11 March highs and which may cap today.
Slips should find support around the 9 March low at 3,303. Below it the four-month uptrend line can be seen at 3,256.
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