Brent Crude Oil, Silver and US Wheat Prices Bounce off Support

Created by Admin in Investors Digests 19 Nov 2024

Brent crude oil price rallies off support

The Brent crude oil front month futures price has swiftly risen by over 3% on Monday from key technical support at 70.64-to-69.91 amid mounting supply concerns. A production outage due to an onshore power cut at Norway’s Johan Sverdrup oilfield, Western Europe’s largest, combined with escalating tensions in the Russia-Ukraine war as President Biden's permits Ukraine to use US long range missile which can strike deep into Russia have driven the oil price higher.

Above the 55-day simple moving average (SMA) at 73.81 the October-to-November downtrend line at 74.36 may offer resistance. If not the early-to-late August lows at 74.97-to-75.24 may be reached as well.

Strong support remains to be seen between Friday’s 70.70 low and the 69.91 October trough.

Spot silver price recovers from the $30.00 region

The spot silver price’s around 14% drop from its 12-year $34.87 per troy ounce high to last week’s $29.68 low has been followed by a bounce towards the 55-day SMA at $31.36 as the strong US dollar appreciation stalls near two-year highs. Further up the 4 November low at $32.29 may offer short-term resistance, together with the $32.96 early October peak.

The psychological $30.00 region with last week’s low at $29.68 now offer support. Only failure there could lead to the early August high at $29.22 being eyed.

US wheat price recovers from three-month low

The US wheat price is in the process of bouncing off its three-month low at 544, made on Thursday, and targets the 573 late October low which represents the first minor resistance level ahead of the October-to-November downtrend line at 582 and the 55- and 200-day SMAs at 587.

Only a fall through last week’s low at 544 would push the 529-to-521 July-to-August lows into the frame.