Brent crude oil price comes off key resistance, silver price struggles as copper tests support
Brent crude oil price comes off key resistance amid President Trump’s plan to boost US oil and gas production while silver price struggles as copper tests support amid rising US dollar.
Brent crude oil price rejected by major resistance area
The Brent crude oil price has been rejected by the $80.90-to-$81.89 per barrel resistance zone, having sharply risen since December.
A rise and daily chart close above the $81.89 per barrel mid-August high is needed to confirm the break out of a wide sideways trading pattern and point towards an ensuing rise towards the $90.00 region.
A US plan to impose 25% tariffs on imports from Canada and Mexico on 1 February is seen as positive for the oil price but President Trump announcing plans to boost US oil and gas production by declaring a national emergency puts pressure on the oil price.
While resistance at $81.89 caps, a fall through Monday's low at $78.68 looks more probable. In this case the steep December-to-January uptrend line and 200-day simple moving average (SMA) at $78.21-to-$78.18 are likely to be revisited. Further down sits the 8 January high at $77.59 which may also get hit.
Silver price struggling to break through downtrend line
The spot silver price is struggling to break through its October-to-January downtrend line and the 55-day SMA at $30.52-to-$30.74 per troy ounce, having come off last week's $30.97 one month high.
Nonetheless the precious metal remains within its January uptrend channels and maintains an overall bullish trajectory.
A rise above last week's $30.97 high would push the mid-November high at $31.53 to the fore.
Minor support is seen along the 200-day SMA at $30.03.
Only a now unexpected fall through the mid-January $29.50 low would put the August-to-January support line at $29.10 on the cards.
Copper price probes key support zone
The copper price’s break through and subsequent rally above its $4.26-to-$4.33 resistance zone, made up of the early December peak, 23 September, mid-October and 23 October lows as well as the mid-December high, has taken it to the next higher $4.45-to-$4.49 resistance area which rejected the metal last week, though.
Since then the previous $4.26-to-$4.33 resistance zone, now because of inverse polarity, is acting as a support area. with the 200-day SMA at $4.29. While it underpins, a medium-term bullish picture will remain in play.
A fall out of the $4.33-to-$4.26 support area could potentially lead to the late July 2024 high at $4.22 being revisited.
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