Brent crude oil price still bounces off lows, while silver, sugar prices rally
The Brent crude oil price continues to recover from its multi-year low but may soon encounter resistance, while silver and sugar prices rally.
Brent crude oil recovers further from early September low
Brent crude oil futures’ prices are still recovering from their 68.53 early September low, a level last seen in November 2021, as oil sentiment is the most bearish in over a decade, perhaps pointing to an imminent reversal of fortunes for the commodity (see here).
The 5 and 21 August lows at 74.97-to-75.24 remain in focus but are likely to stall the bounce, at least temporarily. Having said that, immediate upside pressure will be maintained while Monday’s low at 71.18 underpins, together with the 9 September low at 70.51.
Below the early September 68.53 low lie the mid-May, August and November 2021 lows at 65.74-to-64.52.
Spot silver price revisits two-month high
The spot silver price’s over 11% rally from its early September low has so far taken it to the $31.24 per troy ounce mark, which is back in sight following Wednesday’s wobble and brief drop to $29.71. While it underpins, immediate upside pressure should remain in play.
Above $31.24 beckons the July peak at $31.75 which remains in sight. En route lies the 10 June high at $31.55 and further up the May peak at $32.51.
Sugar price surges to five-month high
The price of sugar has risen sharply due to reduced supply and in doing so has overcome its July and August peaks at 20.11 and 20.79, both of which should now act as support levels.
The sugar price is now trading at levels last seen in April with the early April peak at 22.65 representing the next upside target for the front month futures contract.
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