Brent crude oil finds interim support, silver stays side-lined while sugar rallies to new 11-year high
Outlook on Brent crude oil, silver and sugar.
Brent crude oil found interim support
Oil - Brent Crude’s tumble from last week’s 2 ½ month high at $87.19 due to further central bank monetary tightening that could throttle global growth and energy demand has so far taken it to its current April low at $80.26, nearly closing its March-to-April gap at $79.91, before recovering.
Hopes that the upcoming Golden Week holiday in China may increase fuel demand amid increased travel and a weakening US dollar led to two consecutive rises in the price of Brent crude oil and may extend to a third day with the early April lows at $83.45 to $83.58 offering possible resistance.
Slips may find support along the 55-day simple moving average (SMA) at $81.84 and also along the March-to-April support line at $80.74 ahead of the remaining $80.26 to $79.91 price gap.
Silver sideways trades below its one-year high
The near 30% rally in silver from its $19.90 early March low to its $26.09 mid-April high last week gave way to a low volatility sideways trading range with last week’s low at $24.65 and the $24.63 early February high offering support, together with the 6 April low at $24.57.
If slipped through, the December high at $24.30 would be next in line.
Immediate resistance can be found at last Thursday’s $25.49 high ahead of the current April peak at $26.09, a rise above which would engage the April 2022 peak at $26.22 and the March 2022 high at $26.95.
Sugar price rallies to new eleven-year high
The steep ascent in the price of sugar (no. 11 front month futures), mainly caused by production bottlenecks in key producer nations and countries like India limiting their exports, leading to strong prices as global demand is not being met, has taken it to a new eleven year high at $25.42 for 112000 pounds of raw cane sugar.
The next upside target is the March 2012 high at $26.20, above which there is no resistance to speak of until the February 2010 and August 2011 highs at $30.40 to $31.85.
Immediate upside pressure should be maintained while Monday’s low at $24.07 underpins.
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