Brent, silver capped by resistance as sugar price rush subsides
Brent, silver capped by technical resistance as sugar price rush subsides due to loss of upside momentum.
Brent crude oil price sidelined below resistance
The recent over 6% rise in the Brent crude oil futures’ price from its early September low on heightened tensions in the Middle East stalled below the 5 and 21 August lows at 74.97-75.24 which should act as resistance.
If overcome, the July to September downtrend line at 76.60 may be reached next.
As long as the 74.97-75.24 resistance zone caps, though, further range trading is on the cards.
Only a fall through Monday’s 72.53 low could lead to a retest of the 70.00 region.
Spot silver price range trades in two-month highs
The spot silver price’s over 11% rally from its early September low has taken it to Friday’s $31.43 per troy ounce high below which it has been trading since. Were this level to be exceeded, the 10 June high at $31.55 and July peak at $31.75 would be next in line. Further up sits the May peak at $32.51.
A fall through the accelerated uptrend line and Monday’s low at $30.36 would likely engage last week’s low at $29.71, though. While it underpins, short-term upside pressure should persist.
Sugar price trades in seven-month highs
The price of sugar has risen by over 21% to a seven-month high from its 10 September low as Brazil’s drought and fires tighten global supply. The front month futures contract rallied to 23.11, a level last traded in February.
Upside momentum seems to be slowing down but were a further advance to unfold, the January and February highs at 23.71-23.86 would be targeted but may then cap.
Potential slips may find support around the mid-March high at 22.21 and the 22 February low at 21.57.
Major support can now be found between the July and August peaks at 20.79-20.11. It is also where the 200-day simple moving average (SMA) can be found.
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