Brent crude oil prices have faced resistance in the $80.90 to $81.89 per barrel range, following a significant rise since December. To confirm a breakout from the recent sideways trading pattern, prices need to close above the mid-August high of $81.89 per barrel. Such a move would signal a potential rise toward the $90.00 region.
While a proposed 25% tariff on imports from Canada and Mexico, set to take effect on February 1, is expected to support oil prices, President Trump’s announcement to increase US oil and gas production by declaring a national emergency has put downward pressure on the market.
If resistance at $81.89 holds, a decline below Monday’s low of $78.68 appears likely. In this case, the market could revisit the December-to-January uptrend line and the 200-day simple moving average (SMA), which is currently between $78.21 and $78.18. Further support may be found around the January 8 high at $77.59.
Silver Price Struggles to Overcome Downtrend Line
Silver prices are struggling to break through the downtrend line that has held since October, along with the 55-day SMA between $30.52 and $30.74 per troy ounce. After reaching a one-month high of $30.97 last week, the precious metal has faced downward pressure.
Despite this, silver remains within its uptrend channels from January, maintaining an overall bullish outlook. A move above last week’s high of $30.97 could push prices toward the mid-November high of $31.53.
Minor support for silver is seen at the 200-day SMA, currently at $30.03. However, if the price unexpectedly falls below the mid-January low of $29.50, the next level of support may be found at $29.10.
Copper Price Tests Key Support Zone
Copper prices recently broke through the $4.26 to $4.33 resistance zone, which had previously capped gains. This breakout pushed prices higher to the $4.45 to $4.49 resistance area, where the metal faced rejection last week.
The previous resistance zone, now acting as support due to inverse polarity, is supported by the 200-day SMA at $4.29. As long as copper holds above this level, the medium-term outlook remains bullish.
If the price falls below the $4.33 to $4.26 support zone, copper could potentially revisit the late July 2024 high at $4.22.
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