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 Group

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/en-gb/legal/disclaimer/saxo-disclaimer)

Saxo Markets
40 Bank Street, 26th floor
E14 5DA
London
United Kingdom

Contact Saxo

Select region

United Kingdom
United Kingdom

Trade Responsibly
All trading carries risk. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more
Additional Key Information Documents are available in our trading platform.

Saxo Markets is a registered Trading Name of Saxo Capital Markets UK Ltd (‘SCML’). SCML is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871. Registered in England & Wales.

This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States, Belgium or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.

It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. If you are still unsure if investing is right for you, please seek independent advice. Saxo Markets assumes no liability for any loss sustained from trading in accordance with a recommendation.

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. Android is a trademark of Google Inc.

©   since 1992