Brent crude oil price drops, silver price tests resistance and wheat bounces off three-month low
Brent crude oil price drops ahead of OPEC+ meeting, silver price tests resistance and wheat bounces off three-month low amid slightly depreciating US dollar.
Brent crude oil price drops ahead of Thursday’s OPEC+ meeting
The Brent crude oil front month futures price slid by over 2.5% from Wednesday’s 74.18 high ahead of Thursday’s Organisation of the Petroleum Exporting Countries (OPEC+) expected production cuts amid waning demand. The 22-member alliance is likely to extend output cuts until the end of the first quarter (Q1) of next year.
A slip towards Monday’s low at 71.49 may be at hand and, if fallen through, key technical support at 70.64 - 69.91, the October-to-November lows, would be back in focus.
A rise above this week’s 74.18 high would likely engage the significant 74.95 - 76.16 resistance zone. It consists of the August lows and late October and November highs.
Spot silver price rally encounters resistance
The spot silver price has so far seen five consecutive days of gains and is probably about to revisit its 19 November high at $31.54 and the 55-day simple moving average (SMA) at $31.47 which may once more act as resistance. If not, the May and early October highs at $32.51 - $32.96 may be reached.
The mid to late November lows at $29.68 - $29.65 are expected to continue to offer support.
US wheat price bounces off three-month low
The US wheat price revisited but then bounced off its November and early December three month lows at 544 - 542 with Tuesday’s high at 557 being in sight. If overcome, the 20 November low and the October to December downtrend line at 562 may be retested. While remaining below the next higher 21 November low at 576 , the medium-term downtrend will stay intact, though.
Failure at 542 would likely engage the late August low at 521.
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