Introduction:

In commodity`s WTI Crude Oil is poised for a third consecutive weekly gain as supply constraints, primarily driven by production cuts from major oil players like Saudi Arabia and Russia, continue to tighten the market. West Texas Intermediate (WTI) crude oil surged past the $90 per barrel mark, marking a high not seen since the previous November. Both OPEC and the International Energy Agency (IEA) have expressed concerns about a potential market deficit persisting through the year’s end. Meanwhile, Silver (XAG/USD) faces a bearish trend due to uncertainties surrounding Fed rate decisions and a strengthening US dollar, nearing one-month lows amidst mixed US inflation data.

WTI Crude Oil:

Despite supply constraints, the oil market is on course to post increases for a third straight week.

Due to production restrictions from top oil producers Saudi Arabia and Russia, the oil market is expected to rise for the third week in a row. The benchmark price for West Texas Intermediate (WTI) crude oil, which has been steadily rising, surpassed the $90 per barrel threshold on Thursday, reaching a high not seen since November of the previous year.

The Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) both expressed alarms earlier this week about a potential market deficit that might last until the end of the year.

The production cuts made by Saudi Arabia and Russia, two of the world’s leading oil producers, are largely to blame for the tightening of the oil market. As a result of this circumstance, oil prices have been steadily rising, with WTI reaching significant highs.

Technical Overview:

Moving Averages:

Exponential:

• MA 5: 90.02 | positive Crossover | Bullish
• MA 20: 88.45 | positive Crossover | Bullish
• MA 50: 86.03 | positive Crossover | Bullish

Simple:

• MA 5: 90.05 | positive Crossover | Bullish
• MA 20: 88.30 | positive Crossover | Bullish
• MA 50: 85.25 | positive Crossover | Bullish

RSI (Relative Strength Index): 72.84 | Buying Zone | Bullish

Stochastic Oscillator: 79.36 | Buy Zone | Negative

Resistance And Support Levels: 

• R1: 91.16 | R2: 95.04
• S1: 88.19 | S2: 85.01

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 92.59 | Take Profit: 95.04 | Stop Loss: 91.00

SILVER:

XAG/USD Experiences Bearish Trend Amid Rate Uncertainty.

Due to the expectation of a Fed rate delay and a strong dollar, silver prices are close to one-month lows. The mixed U.S. inflation figures reinforce Fed rate hike forecasts, which hurts silver’s appeal. With a 60% possibility of a pause in November, expectations are growing for the Fed to hold rates constant in September.

The price of silver is under pressure to fall as it nears a one-month low. The U.S. dollar’s increase in value and the increasing possibility of a Federal Reserve rate cut are the main causes of this fall.

Technical Overview :

Moving Averages:

Exponential:

• MA 5: 22.85 | Bearish Crossover | Bullish
• MA 20: 23.01 | Bearish Crossover | Bullish
• MA 50: 23.32 | Negative Crossover | Bearish

Simple:

• MA 5: 22.85 | Positive Crossover | Bullish
• MA 20: 23.01 | Positive Crossover | Bullish
• MA 50: 23.32 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.09 | Buy Zone | Positive

Stochastic Oscillator: 82.21| Buy Zone | Positive

Resistance And Support Levels: 

• R1: 23.22 | R2: 24.30
• S1: 22.68| S2: 22.15

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 23.63 | Take Profit: 24.30 | Stop Loss: 23.22.

Elsewhere In the Commodity Market.

Gold rises with Fed pause insight, The price of copper futures increased 0.8% to $3.8492 per pound and was expected to rise 3.5% for the week.

Gold is up (0.27%) at 1915.92, Silver is up (1.35%) at 22.92, Palladium is up (0.32%) at 1255.00, Platinum is up (0.44%) at 910.00, Brent Crude Oil is up (0.64%) at 94.30, WTI Crude Oil up (0.72%) at 90.81 as of writing time.

Key Economic Events & Data Release Today:

(EUR) ECB President Lagarde Speaks at 15:15.