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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

​​Brent crude oil price drops further as silver, US wheat prices also soften​

​​​Brent crude oil price drops further amid expected restrained Israeli response to Iran’s missile attack as silver, US wheat prices soften​ amid strengthening US dollar.​

Oil Source: Adobe images

​​Brent crude oil price weighs on technical support

​The Brent crude oil price’s decline accelerated as Israel states that it will listen to wishes by the US government of showing restrain in its response to Iran’s missile attack on its soil.

​It is the second time since last week that the front month Brent crude oil futures contract probes its breached July-to-October downtrend line which last week acted as support and may do so again on Tuesday. If so, a minor bounce to the 55-day simple moving average (SMA) at 76.00 may be witnessed. First though, the 74.97-to-75.22 resistance area would need to be overcome, though.

​Below Tuesday’s 74.11 intraday low lies the 23 September low at 72.53 which may act as a magnet in case of the former level giving way.

Brent crude oil chart Source: IT-Finance.com
Brent crude oil chart Source: IT-Finance.com

​Spot silver price resumes descent

​The early October spot silver price’s over 8% fall from last week’s $32.96 per troy ounce near 12-year high to last week’s $30.12 low has been followed by a recovery rally to Friday’s high at $31.63 from which it is currently dropping once more. A potential downside target zone is seen between the $30.19 late August high and the $30.12 current October low. These levels will remain in sight while Friday’s high at $31.63 caps.

Spot silver chart Source: IT-Finance.com
Spot silver chart Source: IT-Finance.com

​US wheat price comes further off near four month high

​Having come off their near four month high at 626, US wheat futures prices have so far slid to the 200-day SMA at 590. It may withstand short-term downside pressure. If not, a more significant descent towards the late September low at 583 may be on the cards.

​The 600-to-602 zone should once again act as resistance. 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.

US wheat chart Source: IT-Finance.com
US wheat chart Source: IT-Finance.com

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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