Brent, silver capped by resistance as sugar price rush subsides
Brent crude oil price sidelined below resistance
The recent over 6% rise in the Brent crude oil futures’ price from its early September low on heightened tensions in the Middle East stalled below the 5 and 21 August lows at 74.97-75.24 which should act as resistance.
If overcome, the July to September downtrend line at 76.60 may be reached next.
As long as the 74.97-75.24 resistance zone caps, though, further range trading is on the cards.
Only a fall through Monday’s 72.53 low could lead to a retest of the 70.00 region.
Spot silver price range trades in two-month highs
The spot silver price’s over 11% rally from its early September low has taken it to Friday’s $31.43 per troy ounce high below which it has been trading since. Were this level to be exceeded, the 10 June high at $31.55 and July peak at $31.75 would be next in line. Further up sits the May peak at $32.51.
A fall through the accelerated uptrend line and Monday’s low at $30.36 would likely engage last week’s low at $29.71, though. While it underpins, short-term upside pressure should persist.
Sugar price trades in seven-month highs
The price of sugar has risen by over 21% to a seven-month high from its 10 September low as Brazil’s drought and fires tighten global supply. The front month futures contract rallied to 23.11, a level last traded in February.
Upside momentum seems to be slowing down but were a further advance to unfold, the January and February highs at 23.71-23.86 would be targeted but may then cap.
Potential slips may find support around the mid-March high at 22.21 and the 22 February low at 21.57.
Major support can now be found between the July and August peaks at 20.79-20.11. It is also where the 200-day simple moving average (SMA) can be found.