Brent crude oil, silver and wheat prices drop on Middle East de-escalation
Brent crude oil, silver and wheat prices drop on hopes of a Hezbollah and Israel ceasefire deal.
Brent crude oil price drops on hopes of Israel/Lebanon ceasefire deal
The Brent crude oil front month futures price came to within a whisker of its 74.97-to-76.16 resistance zone before dropping rapidly on hopes of Hezbollah and Israel agreeing to a ceasefire deal.
The mid-October low at 72.27 is thus being revisited, below which lies the key technical support zone at 70.64-to-69.91. Further sideways trading between these main support and resistance areas is expected to be seen.
Minor resistance is seen along the 55-day simple moving average (SMA) at 73.95 and minor support around the 12 November low at 71.48.
Spot silver price retests uptrend line
The spot silver price dropped in line with the spot gold prices on de-escalation in the Middle East with the August-to-November uptrend line at $29.99 per troy ounce being revisited. Together with the current November low at $29.68 it may offer support. If not, the early August high at $29.22 might be hit ahead of the 200-day SMA at $29.00.
Minor resistance can be found at the 21 November $30.65 low and along the October-to-November downtrend line at $31.24. While the next higher 19 November high at $31.54 and the 55-day SMA at $31.63 cap, downside pressure should retain the upper hand.
US wheat price slips back to three-month low
The US wheat price has seen three straight days of lower prices with the current November low at 544 being back in sight. Slightly above it the August-to-November tentative support line at 547 may offer support. Failure at both levels would engage the late August low at 521.
Minor resistance above the 20 November low at 562 can be spotted along the October-to-November downtrend line at 573 and at last week’s 576 high. While remaining below it, the medium-term downtrend will stay intact.
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