Industrial Industrial Industrial

Technical Update - Copper breaking resistance levels. Gold and Silver struggle to move higher

Commodities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Copper surged more than 5% Thursday taking out the resistance at $435 and closed above the 0.618 Fibonacci retracement. RSI closed above 60 threshold i.e. back in positive territory and uptrend confirmed.
Expect a few days with minor setback/sideways trading before copper is likely to test falling upper trend line and 0.764 retracement at around 465.
For Copper to reverse the bullish outlook a close below 420 is needed. First sign of this not very likely scenario to play out is a close below the lower rising trend line

Source: Saxo Group

Other metals reacted to the surge in copper.

Gold Spot
AUXUSD closed almost spot on the 0.382 retracement and is in a neutral position. Break out from 1,875 or 1,825 is needed for direction. If Gold drops back below 1,825 bear trend resumes.
With the declining Simple Moving Averages (SMA’s) there are headwind for Gold. RSI still showing negative sentiment.

Source: Saxo Group

Silver spot XAGUSD jumped too but seems to be rejected at last week’s peak around 22.45. Break below 21.45 bear trend resumes.
With the declining SMA’s there are headwind for Gold. RSI still showing negative sentiment.

Source: Saxo Group

Gold/Silver Ratio XAUXAG seems range bound between 82.90 and 86. Break from that range is needed for direction. RSI showing no divergence indicates break out to be to the upside with likely new highs.
However, further downward correction to around 81-81.60 before uptrend resumes is not unlikely.

Source: Saxo Group

Platinum Spot XPTUSD is in an uptrend testing resistance at around $1,025. A close above confirms that picture.
Platinum seems to be unfolding an inverted Shoulder-Head-Shoulder like pattern with a potential target 1,080-1,100

Source: Saxo Group
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 is not intended to and does not change or expand on this. 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-hk/legal/disclaimer/saxo-disclaimer)

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited holds a Type 1 Regulated Activity (Dealing in securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged foreign exchange trading); Type 4 Regulated Activity (Advising on securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong

By clicking on certain links on this site, you are aware and agree to leave the website of Saxo Capital Markets, proceed on to the linked site managed by Saxo Group and where you will be subject to the terms of that linked site.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

Please note that the information on this site and any product and services we offer are not targeted at investors residing in the United States and Japan, and are not intended for distribution to, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please click here to view our full disclaimer.