Brent crude oil, US wheat price drops halt while silver price dips
Brent crude oil price weighs remains under pressure
The Brent crude oil price remains under pressure but seems to have found interim support at 73.20 on the front month futures contract amid lower US stockpiles.
It is the fourth day in a row that the front month Brent crude oil futures contract oscillates around its breached July-to-October downtrend line at 74.08.
Below Tuesday’s 73.20 low lies the 23 September low at 72.53 which remains in sight while the previous support zone, now because of inverse polarity a resistance area, at 74.97-to-75.24 caps.
Further up meanders the 55-day simple moving average (SMA) at 75.75.
Spot silver price resumes descent
The spot silver price may have ended it run up to this week’s $32.18 per troy ounce high, made close to the May peak at $32.51. If so, a fall through Tuesday’s $30.77 low would confirm a minor top with the $30.19 late August high and the $30.12 current October low then being back in focus.
Above $32.18 strong resistance may be encountered between the May and early October highs at $32.51-to-$32.96.
US wheat price finds interim support
Having come off their near four month high at 626 in early October, US wheat futures prices have so far slid to the 200-day SMA at 590 which has been acting as support this week. Were it and this week’s low at 588 to give way, a more significant descent towards the late September low at 583 may be at hand.
The 600-to-602 zone should still act as a resistance area. While no bullish reversal takes the wheat price to above last week’s 622 high, further downside is expected to be seen, now that a fall though the August-to-October uptrend line has occurred.