Brent crude oil price probes resistance, silver price levels out while wheat price is side-lined
The Brent crude oil price probes resistance following a postponed OPEC+ output increase as the silver price levels out while US wheat prices stay side-lined.
Brent crude oil price rises on OPEC+ postponed output increases
The Brent crude oil front month futures price rose by over 2% on Wednesday as OPEC+ postponed planned output increases by a month and reached the major 75.24-to-76.16 resistance zone. It consists of the August lows as well as the late September and late October highs. This resistance area is expected to cap, at least short-term.
While no rise above 76.16 is seen, a slip back towards the mid-October low at 72.27 is expected to unfold. Further down lies the major 70.29-to-68.53 support zone.
Above 76.16 lies the significant 80.61-to-81.97 resistance area.
Spot silver price drop slows down
The spot silver price’s descent from its 12-year $34.87 per troy ounce high has so far taken it to $32.25 before levelling out. This low was made right between the May-to-July highs at $32.51-to-$31.75 which act as support.
While the $32.51-to-$31.75 support area underpins, a rise to the $32.96 early October high should unfold. Further up minor resistance can be found around the 25 October low at $33.09 and more significant resistance at the recent $34.55-to-$34.87 highs.
Failure at $31.75 would put the late August high at $30.19 on the cards.
US wheat price continues to range trade in low volatility
US wheat futures prices have been side-lined for the past week, having bounced off their 573 low and been capped by the 200-day simple moving average (SMA) at 588.
A rise above not only Wednesday’s high at 594 but also the 25 October high at 598 is needed for a bullish breakout to unfold.
Minor support can be found between the 55-day SMA and 22 October low at 581.5-to-579 ahead of the October low at 573. Further down sits the 9 September low at 564.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
