Technical Update- Precious Metals
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. .
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.
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.
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.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.