Technical Update - Silver bounced strongly with Gold lagging, but can it continue? Gold/Silver ratio hit strong resistance. Copper in a limbo Technical Update - Silver bounced strongly with Gold lagging, but can it continue? Gold/Silver ratio hit strong resistance. Copper in a limbo Technical Update - Silver bounced strongly with Gold lagging, but can it continue? Gold/Silver ratio hit strong resistance. Copper in a limbo

Technical Update - Silver bounced strongly with Gold lagging, but can it continue? Gold/Silver ratio hit strong resistance. Copper in a limbo

Commodities 4 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Silver broke below the support at 18.14 but bounced strongly back and broke above the falling trend line. Going straight through the 0.618 Fibo retracement Silver is getting close to test the 0.764 retracement at 20.08.
However, the big test would be at the key resistance at 20.88. If Silver closes above, the short- and medium-term down trend has reversed, and Silver could move to around 22.00-22.50.
RSI is back above 60 threshold i.e., showing bullish sentiment indicating higher levels are likely
However, if Silver closes back below the falling trend line it could lose its momentum. A close below  19.00 it is likely to resume bear trend and push the precious metal towards 18.00


Source: Saxo Group

Gold XAUUSD didn’t even test the 1,680 support before a rebound has set in. But the rebound doesn’t seem to get traction struggling to break the 0.382 retracement at 1,734 and after the release of CPI numbers Gold has been hammered down.
However, even if buyers are coming lifting Gold above the 0.382 retracement at 1,734 the big test will be whether Gold can break the falling trend line and more importantly the 1,766 resistance.
If closing above resistance at 1,766 a move to around 1,800-1,830 is in the cards. 1,830 is the 0.382 Fibo retracement of the past six months bear trend.
However, with the rejection of the 1,734 minor resistance Gold is likely to test the 1,680. A close below can send Gold much lower.
Weekly chart shows that there us no support before around the 0.764 retracement at 1,598. The 200 weekly SMA will provide some support however, but the trend will be down.

Source: Saxo Group
Source: Saxo Group

Gold/Silver ratio XAUXAG had been showing divergence on RSI which indicated weakening of the (up)trend. After hitting strong resistance at 95.80 last week the sell-off was initiated by forming a Bearish Engulfing top and reversal candle. Selling pressure is continuing this week.
Silver has broken the below the medium term rising trendline and is close to reverse the uptrend. If closing below 86.20 the trend has reversed, and next support is at 82.26.

Source: Saxo Group

Copper has bounced strongly from the 0.618 retracement and looked to be set for at a test of August peak at around 378.30. But a rejection at the 0.764 retracement at 368 and with RSI still showing negative sentiment the selling pressure in Copper could accelerate.
If Copper drops back below its 55 SMA 336 support is likely to be taken out and Copper to test the July lows at around 313. RSI is showing negative sentiment and needs to close above 60 to reverse that.
For Copper to regain upside momentum 368 needs to be taken out. But the big test wis 378.30. A close above and Copper has established an uptrend.

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.