Metals seem to have bottomed out

Metals seem to have bottomed out

Commodities 7 minutes to read

Summary:  Across the board metals seem to have found strong support and have formed technical bottom and reversal patterns.


Gold XAUUSD is a bit less convincing than other metals. However, on Daily time period the precious metal has established a short term uptrend (higher highs and higher lows). 200 Simple Moving Average seems to be a resistance. However, if Gold can break above USD 1.810/oz there is strong resistance at around USD1.834. That level is likely to be crucial for Bulls/Bears. If rejected Gold could slip back in to the 1.700’s. If breaking above 1.834 May high at around 1.900 is in play. 
Break below support at USD 1.745, 1.725 is next (stronger) support. 

On the Weekly time period Gold is in the process of forming a Descending Triangle like pattern which could be a big corrective formation. However, for medium/longer term direction a break out is needed. A break above strong resistance at 1.834 is likely to lead to a bullish break out leading to significantly higher levels in the future.

Source: Saxo Group
Source: Saxo Group

Silver XAGUSD seems to have formed an Inverse Shoulder- Head-Shoulder pattern with rather flat Shoulders and Neckline, however, a bit unusual. A close above the Neckline confirms the break out with potential to around USD 24.85/oz. It most likely wouldn’t be without a struggle since there is some resistance from the 55 SMA coming down.
A close below the right shoulder low at USD22.20 will demolish the rebound scenario.

Source: Saxo Group

Platinum has formed an Inverse Shoulder- Head-Shoulder pattern, broken above the neckline and is now set for higher levels. Measuring from the Head to the Neckline give us a price target around USD 1.100 which is also roughly where the 200 Simple Moving is offering some resistance.
A close below the right shoulder low at 939 will demolish the rebound scenario.

Palladium

After being range bound between USD 1.827 and 2.080 for a few weeks Palladium closed above the resistance and could be set for a push higher. If the move should be as big as the range (2.080-1.827 = 253) we could see Platinum reach USD 2.333 which is close to the 76.4 Fibo retracement of the September sell-off. There is however, resistance at around 61.8 retracement at around 2.243 where 55 SMA also seems to offer some resistance.
Strong resistance at around USD 2.500. A close below 2.028 is likely to demolish the rebound scenario.

Copper has broken out of a triangle like pattern and above strong resistance at around USd 447/t. Next resistance at around 432.75. However, this break out could test previous All time highs at around 488.80.

On the weekly chart Copper is close to break back above the rising trend line. RSI has broken its falling trend and is close to be breaking back above 60 threshold with no divergence meaning seeing new highs is not unlikely.

Disclaimer

The Saxo 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 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 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 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 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 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-sg/legal/disclaimer/saxo-disclaimer)

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Saxo Markets
Most of our staff in Singapore are working from home to help limit the spread of the coronavirus. We remain at your service on the details below. Thank you for your understanding.

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.