Brent crude oil, silver and US wheat prices bounce off support
Brent crude oil, silver and US wheat prices bounce off support as the US dollar rally is taking a breather.
Brent crude oil price rallies off support
The Brent crude oil front month futures price has swiftly risen by over 3% on Monday from key technical support at 70.64-to-69.91 amid mounting supply concerns. A production outage due to an onshore power cut at Norway’s Johan Sverdrup oilfield, Western Europe’s largest, combined with escalating tensions in the Russia-Ukraine war as President Biden's permits Ukraine to use US long range missile which can strike deep into Russia have driven the oil price higher.
Above the 55-day simple moving average (SMA) at 73.81 the October-to-November downtrend line at 74.36 may offer resistance. If not the early-to-late August lows at 74.97-to-75.24 may be reached as well.
Strong support remains to be seen between Friday’s 70.70 low and the 69.91 October trough.
Spot silver price recovers from the $30.00 region
The spot silver price’s around 14% drop from its 12-year $34.87 per troy ounce high to last week’s $29.68 low has been followed by a bounce towards the 55-day SMA at $31.36 as the strong US dollar appreciation stalls near two-year highs. Further up the 4 November low at $32.29 may offer short-term resistance, together with the $32.96 early October peak.
The psychological $30.00 region with last week’s low at $29.68 now offer support. Only failure there could lead to the early August high at $29.22 being eyed.
US wheat price recovers from three-month low
The US wheat price is in the process of bouncing off its three-month low at 544, made on Thursday, and targets the 573 late October low which represents the first minor resistance level ahead of the October-to-November downtrend line at 582 and the 55- and 200-day SMAs at 587.
Only a fall through last week’s low at 544 would push the 529-to-521 July-to-August lows into the frame.
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