Crude Oil and Silver Analysis: Commodities Approach Critical Levels

• Crude Oil is retesting February lows with oversupply concerns

• USOIL Daily Relative Strength Index hits lowest level since March 2023

• Silver dives deeper into 29$ territory, bulls look for buying opportunities

Bearish market anticipation is looming over oil markets with oversupply concerns. OPEC supply policies are not guaranteed to shift by October, yet the market priced in an oversupply amid a weaker demand outlook for the economies. JOLTS Job openings are in sight today for an early insight on the employment state and economic activity potential, ahead of the non-farm payrolls on Friday. From a technical view, the steep drop of oil charts is accompanied with a steep retest to oversold relative strength index levels, spiking contrarian investor interest.

With respect to Silver, the precious metal hit a deep dive after retracing its 11 year-highs at 32.50$ per ounce, and bulls are looking for retracement opportunities to reload their long positions onto the potential evergreen investment.

Technical Analysis:

Crude Oil Analysis: Daily Time Frame – Logarithmic Scale

With bearish dominance crude oil’s trend has dropped beyond the yearly up trending channel and is headed towards the mid zone of its bearish duplicate. The next key level in sight is the 70.80 level, being the 0.618 extension level from the 2023 high, 2023 low, and 2024 high. A further drop would head to the lower channel extremity towards the 66-zone, given the breakout below 69. Positive rebounds can meet resistance levels back at the previous broken supports, near 74 and 75.50.

Silver Analysis: Daily Time Frame – Logarithmic Scale

Heading deeper into the 29-price zone territory, buying opportunities can potentially be found near the 29 – 28.50 price zone given the breakout below the latest 29.58 low. As previously mentioned, market odds are valid game players, and an extreme drop can retest the 26 level. On the upside, the 31.50 and 32.50 levels are potentially the next resisting barriers prior to the continuation of the primary uptrend.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.