Crude Oil Rebounds While Silver Hits 13-Year Highs
As summer demand ramps up, FOREX.com’s Razan Hilal breaks down the bullish momentum behind oil and silver, two key commodities experiencing renewed volatility.
Key Takeaways
Crude oil breaks one-month consolidation and eyes $71 if $65 holds
Silver touches 13-year highs with potential to reach $50
Overbought RSI levels suggest short-term correction risk for silver
Market Outlook for Crude Oil and Silver
Crude oil has recently rebounded due to strong summer demand and a significant drop in inventories, pushing prices toward the key $65 resistance level. FOREX.com Market Analyst Razan Hilal explains that this breakout follows a one-month consolidation phase and positions oil for a potential extension to $71, assuming $65 holds. However, momentum remains mixed, with the RSI hovering below 50, keeping the broader outlook between positive and neutral. A drop below $60 could reverse the trend, opening downside risks toward $58 and $55. On the silver front, prices have surged to 13-year highs above $36 per ounce, testing a long-term trendline and resistance near $37.30. This level aligns with the projected target from an inverted head and shoulders pattern formed between August 2020 and April 2024. While the rally could extend to the $40 level or even $50 with continued momentum, overbought RSI readings suggest a possible pullback. Hilal identifies $35, $34.70, and $33.72 as key support levels where silver might stabilize before resuming its uptrend.
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