Brent crude oil continues to rise while gold and copper await Jerome Powell testimony

Brent crude oil nears its $86.72 mid-February high

Brent crude oil continues its gradual advance and is approaching its mid-February high at $86.72 while remaining within its November-to-March sideways trading range as China’s trade surplus for January and February comes in larger than expected while its imports drop by more than expected.

A rise above the mid-February high at $86.72 and the early January high at $86.93 would engage the major $87.99 to $89.35 resistance zone, consisting of the mid-October low and the late November-to-January highs which capped any advance since late November.

Minor support can be spotted along the 55-day simple moving average (SMA) at $83.73 and Friday’s low at $82.29. While it underpins, the recent upside bias should prevail. If unexpectedly slipped through, however, the December-to-March uptrend line at $81.05 would come back into the frame.

Gold bounce is taking a breather

Gold’s recent advance from last week’s low at $1,805 has taken the precious metal back towards the 55-day simple moving average (SMA) at $1,864 below which it is consolidating ahead of US Federal Reserve (Fed) President Jerome Powell’s speeches in front of the Senate Banking Committee on Tuesday and the House Financial Services panel on Wednesday.

Were a rise to above Monday’s high at $1,858 and the 55-day SMA at $1.864 to be seen, the mid-February high at $1,870 would be next in line, followed by the 9 February high at $1,890.

Slips may find support around the 5 January and 17 February lows at $1,826 to $1,819.

Recent slide in copper is levelling out

The recent slide in the price of copper has taken it back to $8,811 per ton low on Monday before forming a potentially bullish Hammer formation on the daily candlestick chart which took its price back above the 55-day simple moving average (SMA) at $8,906 ahead of Fed Chair Jerome Powell’s bi-annual speech to Congress which will be closely watched by market participants as to how he intends to push ‘sticky’ inflation lower.

A rise above Monday’s $8,979 Hammer high would push the 8 February high at $9,064 back to the fore as well as the January-to-March downtrend line at $9,082 whereas a fall through Monday’s low at $8,811 would put the October-to-March uptrend line at $$8,766 back on the map. Below it lies the $8,671 late February low and the far more technically important November and December highs at $8,629 to $8,593 which make up a significant support area.