Brent crude oil, gold and US natural gas prices remain under pressure
Outlook on Brent crude oil, gold and US natural gas amid global recession fears and Russian drone attacks on Ukraine.
Brent crude oil revisits $90 zone
Brent crude oil’s slide from its $98.00 early October high has taken it back to the minor psychological $90 mark which so far acts as support despite global recession fears lingering following warnings of a slowdown last week from the IMF and World Bank.
A slip through $90.00 would most likely lead to further falls towards the $86.99 early September low being witnessed. Slightly above this level the late September high can be spotted at $88.69 and the 19 September low at $87.62.
Immediate resistance above the two-week resistance line and 21 September high at $92.42 to $92.53 can be seen along the 55-day simple moving average (SMA) at $93.04.
While the price of Brent crude oil remains below its last relative high, a high on a daily candlestick which is higher than that of the previous and next candle, it remains in a short-term downtrend. The last one was formed last Friday at $94.29.
Gold remains under pressure
Gold continues to slide from its $1,729 early October high as the US dollar continues to give back some of its recent gains as risk on sentiment enters the market on the back of the UK government’s u-turn on nearly all of its previously promised tax cuts.
The price of gold has so far successfully been trying to hold above last week’s $1,641 per troy ounce low, a fall through which remains on the cards, though, as long as the resistance zone made up of the July and early September lows at $1,681 to $1,689 caps.
A drop through $1,641 would engage the September trough at $1,616. Immediate resistance is seen along the October resistance line at $1,661.
US natural gas futures trade in 3-month lows
US natural gas futures, which for much of last week traded along the 200-day SMA at $6.768, on Monday gapped lower to three-month lows on weaker demand as global recession fears remain in investors’ minds.
The front month futures contract slid through the $6.370 early October low and has the 12 July low at $5.955 in its sight, ahead of the June and July troughs at $5.360 to $5.330. This should remain the case as long as natural gas stays below its $7.260 early October high.
Below it resistance can be found along the breached July-to-October support line, now because of inverse polarity resistance line, at $6.550, the September-to-October resistance line at $6.700, 200-day SMA at $6.768 and the 12 October high at $6.964.
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