Silver pullback likely to be short-lived as bulls regain front foot
Silver’s inability to break below the triangle on the daily chart proved significant for bulls as the spike yesterday means a likely cup and handle formation is in play, where a move above $16.47 would complete the handle. The creation of a new high is likely to be joined by a new higher low at $16.10 and I am bullish for a move back to $16.47 in the near-term.
Brent falls back again to trendline support
Brent has continued to gradually trend lower. Key support is in sight around $63, with the convergence of two inside trendlines. The likeliness is that we will catch another bounce from around that area and thus I am bullish over the very short-term should prices dip into that triangle.
In which case I would be looking for a move from $63 up to $64 to close out the week. Despite this, I do think we will have further to run on the downside.
WTI sells off from triangle once more yet support is in sight
The triangle resistance zones are working well recently, with the WTI zone providing yet another selloff overnight. However, the WTI chart has been creating a very interesting pattern, with gradually rounding bottoms and tops, which would point towards a move up towards $61.57 and $61.84 in the coming weeks.
In order to achieve this, price has to bounce higher from a level above $58.81 and I have highlighted another triangle that I believe will give us the next leg higher. The zone between two ascending trendlines is accompanied by the lower Bollinger boundary and as such I am bearish, yet believe we could see a significant spike higher following a move down into the $59.80-$59.35 zone.