Brent crude oil, gold and iron ore price forecasts 8 June 2023
While the oil price rebounds, gold is testing key support and iron ore is making an attempt at a short to medium term trend reversal.
Brent crude oil
The price of brent crude oil has again started to rebound in the short term with wedge resistance at 78.70, and lateral resistance at 80.80, possible upside targets from the move.
The long term trend does however remain down as the price continues to trade below the 200 day simple moving average (blue line) (200MA).
Trend followers might hope to see a bearish reversal closer to either the 78.70 or 80.80 resistance levels before looking for new short positions in line with the longer term trend. In this scenario a close above the reversal high might be used as a stop loss consideration, while looking for a move back towards support at the 72.20 support level.
Should the price instead continue to rebound, not form a bearish reversal, and instead start trading back above the 200MA, the downside trend bias would need to be reassessed.
Gold
The price of gold is currently trading in a short-term range between levels 1945 (support) and 1980 (resistance), while the longer-term trend for the commodity remains up with the price still trading firmly above the 200MA.
A strong close higher off the 1945 support level might consider a short-term range trade, with 1980 the initial resistance target. In this scenario, a close below the reversal low or 1945 support level might be used as a stop loss indication. Should a price close above the 1980 level materialize, 2005 becomes a further target from the move.
Should a bullish reversal off the 1945 support level not confirm, and instead we see a sharp close below this level, trend followers might prefer to see a bullish price reversal before the 200MA for long entry.
Only on a move below the 200MA would the longer-term uptrend be considered to have been broken, and the long trade bias assumptions reassessed.
Iron ore
The price of iron ore trades in a long term sideways rangebound environment, as we see the price continuing to whipsaw back and forth through the 200MA.
In the short to medium there has been a downtrend in place which now looks to be reversing. The ‘W’ shaped price action below the 740 level marks a double bottom reversal pattern which suggests that the short to medium downtrend has moved into a near term uptrend. The reversal sees 795 as the initial upside target from the move.
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