Technical Update- Precious Metals Technical Update- Precious Metals Technical Update- Precious Metals

Technical Update- Precious Metals

Commodities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  Volatile precious metals being rejected at key resistance levels. Only Palladium broke resistance now testing longer term falling trend


Gold XAUUSD got rejected at the 0.764 Fibonacci retracement a round $1,850 and dropped back down to test the lower rising trend line. If it closes below and breaks below $1,782 there is room for the precious metal to drop to support around $1,725.
The 55 SMA is close to break below the 200 SMA (Simple Moving Average) meaning the underlying trend seems to shifting.
RSI still above 40 threshold i.e. not in negative sentiment just yet, but its close. .

Source: Saxo Group

Similar to Gold Silver XAGUSD also got rejected at the 0.764 Fibo retracement of the December sell off, the falling trend line going back almost a year AND the 200 SMA. The precious metal now being back below the 55 SMA seems to be trading in a wide falling channel that is likely to take it down to test the support at around  $21.42.
The RSI has broken below its rising trend still but keeping above 40 threshold. A break below is not likely which would confirm the down wards pressure on the price.

Source: Saxo Group

Platinum XPTUSD seems to mirror the pattern from Gold. Rejected at Fibo 0.764 retracement and the 200 SMA. A sell off is not unlikely down to the lower rising trend line and the 55 SMA.
A move above $1,066 would reverse the trend followed by a re-test of $1,100 level.

Source: Saxo Group
Source: Saxo Group

Palladium broke above the strong support at around $2.200 and is currently trading around the 200 SMA. At the time of writing Palladium seems to be rejected forming a potential Bearish Engulfing candle i.e. a top and reversal candle. If that scenario plays out Palladium is likely to be sold off down to test the now support at around $2,205. Above $2,390 Palladium would likely be looking at $2,600-2,750.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
Beethovenstrasse 33
CH-8002
Zurich
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.