Brent crude price and silver price struggle but Cocoa price rallies
While both Brent and silver have fallen in early trading, cocoa prices are enjoying renewed strength.
Brent under pressure
This week has seen the Brent crude oil price rally to $76.00 but fail to hold these highs.
A lower open today could be the start of a lower high that marks the beginning of the next downside leg. Gains in late October also failed to hold $76.00, so this appears to be the line in the sand for now. Further losses target the $70.00 zone, which marked support at the end of September and also in late October.
A close back above $76.00 negates this view and could see further strength in the direction of the October highs around $80.00.
Silver on the back foot
The spot silver price rallied on Thursday after Wednesday’s slump, but the sellers have taken hold once again.
This has muddied the waters for those hoping for a higher low after the pullback from the October highs. For a bullish view to emerge, we would need to see a higher close today, which might then put the price back on course to the highs of October.
Alternately, further losses target the $30.00 level, which the price neared in early October.
London cocoa surges
The surge from the lows of late October has received a fresh boost this morning, taking the London cocoa price to its highest level in three weeks.
Gains in October stalled below 5700, so a close above here would help to bolster the short-term bullish view. Nonetheless, with the price operating below the 50- and 100-day simple moving averages, the overall view continues to lean bearish. For the moment however, the sellers appear to have ceded control.
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