Sharp move lower in silver fails to last as buyers come back in
The break below a consolidating channel overnight has led to significant losses for silver, yet the existence of two major support levels at $15.60 and $15.47 managed to bring the buyers back in very quickly. This hammer candle, if it closes in the green, actually looks very bullish and as such we could see further upside later into the session. However, the trendline resistance (currently $15.85) would have to be taken out first for a move towards $15.98. A failure to break above the trendline could lead to further losses.
Brent finds support and begins to show bullish signs amid selloff
Brent crude has found continued support upon the trendline from back in early May. This will be the key hurdle to any further downside today. With yesterday seeing the price burst to a new swing high and the MACD histogram beginning to turn, the warning signs are there for a possible strengthening of Brent. As such, should the price move above $63.96, I would see this as a bullish signal for another attempt to create a new high above $65.04. However, should the price break below $62.80, then I would be expecting another move back to the $62.12 support level.
WTI sells off from resistance, but creation of new low is a worry
WTI has sold off sharply from the key $61.57 resistance level. However, for the first time this month, we have seen a new lower low created, which is a bit of a warning sign. On the daily chart, the price has been followed perfectly by momentum, with the stochastic pattern matching that of the price. However, the stochastic has recently fallen away, which is a signal that perhaps the momentum behind this recent strength is coming off somewhat. Nevertheless, price action is king and as we stand, we are watching consolidation. Given the weakness in momentum, I would not be surprised to see weakness come into play, but I would only be bearish should the price break below $59.44.