Precious Metals Market Update

[Solid ECN]

XAGUSD - Growth is possible.​

On the daily chart, a downward correction of the higher level ended as the second wave (2), within which the wave C of (2) formed, and the development of the third wave (3) started. Now, the first entry wave of the lower level i of 1 of (3) is developing, within which the wave (iii) of i has formed, a local correction has ended as the wave (iv) of I, and the wave (v) of i is developing.

If the assumption is correct, the XAGUSD pair will grow to the area of 22.47–23.7. In this scenario, critical stop loss level is 18.81.

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[Solid ECN]

XAUUSD Analysis​

The gold price has broken through Friday’s high, and the price has been corrected since then. The market is now driving to the Additional Zone 1667 – 1666. The AZ is a strong support level, after the test of which, one could enter new purchases with a target at yesterday’s high.

If the AZ is broken out downside, the correction will continue down to the trend key support 1653 – 1650. After the key support test, I also recommend entering purchases with the target suggested above.

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• Buy in Additional Zone 1667 - 1666 | Take Profit: 1681 | Stop Loss: according to the pattern rules.​
• Buy in Intermediary Zone 1653 - 1650 | Take Profit: 1681 | Stop Loss: according to the pattern rules.​

 

[Solid ECN]

Gold - Growth is possible.​

On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum. Now, the development of the fifth wave (5) has started, within which the first entry wave of the lower level 1 of (5) is developing.

If the assumption is correct, the XAUUSD pair will grow to the area of 1808.08–1881.56. In this scenario, critical stop loss level is 1615.79.

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[Solid ECN]

XAGUSD - Growth is possible.​

On the daily chart, a downward correction of the higher level ended as the second wave (2), within which the wave C of (2) formed, and the development of the third wave (3) started. Now, the first entry wave of the lower level i of 1 of (3) has formed, within which the wave (v) of i has ended.

If the assumption is correct, after the end of the local correction ii of 1 of (3), the XAGUSD pair will grow to the area of 23.7–25. In this scenario, critical stop loss level is 19.25.

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[Solid ECN]

Crude Oil - A fall is possible.

On the daily chart, the first wave of the higher level (1) formed, and a downward correction develops as the second wave (2), within which the wave А of (2) forms. Now, the fifth wave of the lower level v of A is forming, within which the wave (iii) of v is developing.

If the assumption is correct, the price of the asset will fall to the area of 67 – 52.25. In this scenario, critical stop loss level is 90.30.

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[Solid ECN]

XAUUSD - drop in demand for the metal is a catalyst for lower quotes

The instrument completed an upward correction and again moved to a decrease against the backdrop of alarming data from China, where deaths of citizens infected with coronavirus were recorded over the weekend. One of the largest industrial centers of the country, Guangzhou, has already been quarantined, and fears that the Chinese authorities may again go for a complete lockdown of the country are growing, which could threaten a temporary loss of the largest market for gold.

On the daily chart of the asset, the price has left the limits of a wide downward channel and is still trying to return to the resistance line in order to retest.

Support levels: 1725, 1665 | Resistance levels: 1780, 1850​

 

[Solid ECN]

Gold Price Keeps its Negative Stability

Gold price tested 1746.40 level and kept its stability below it, to resume the negative trades and attempts to move away from this level, which keeps the correctional bearish trend valid, waiting to test 1721.65 as a next main target. The EMA50 forms negative pressure that supports the expected decline, which will remain valid unless breaching 1746.4 – 1754 levels and holding above them.

The expected trading range for today is between 1715 support and 1750 resistance, and the expected trend for today is Bearish.

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[Solid ECN]

XAUUSD - The possibility of growth remains.

On the daily chart, the downward correction has ended as the fourth wave of the higher level (4), within which wave C of (4) has formed as an impulse and the development of the fifth wave (5) has begun. At the moment, the first wave of the lower level 1 of (5) is being built, in which wave iii of 1 formed and corrective wave iv of 1 ended.

It is predicted that the quotes of the XAUUSD pair will continue their upward dynamics in the area of 1808.08 - 1881.56. The level of 1720.15 is critical and stop-loss for this scenario.

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[Solid ECN]

Gold Technical Analysis

Gold price tests the key support 1746.4 and keeps its stability above it until now, which keeps the bullish trend scenario valid for the upcoming period, supported by the EMA50, waiting to resume the bullish bias to visit 1765 initially. On the other hand, we should note that breaking 1746.4 and holding below it will stop the positive scenario and push the price back to the correctional bearish track again, to head towards testing 1721.65 areas initially.

The expected trading range for today is between 1735 support and 1775 resistance, and the expected trend for today is Bullish.

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[Solid ECN]

XAGUSD - The price is in a correction, a fall is possible.

On the daily chart, a downward correction of the higher level ended as the second wave (2), within which the wave C of (2) formed, and the development of the third wave (3) started. Now, the first entry wave of the lower level i of 1 of (3) has formed, and the correctional wave ii of 1 of (3) is developing, within which the wave (a) of ii has ended, the wave (b) of ii has formed, and the wave (c) of ii is developing.

If the assumption is correct, the XAGUSD pair will fall to the area of 19.88 – 19.32. In this scenario, critical stop loss level is 21.70.

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[Solid ECN]

Gold price surpasses the first target

Gold price succeeded to surpass our first positive target at 1765 to confirm the continuation of the bullish wave on the intraday and short term basis, and the way is open to achieve our next target at 1786.5, and we suggest the continuation of the bullish bias to breach this level and achieve additional gains that reach 1812 areas.

Therefore, the bullish trend will remain valid for the upcoming period, supported by the EMA50 that carries the price from below, noting that the continuation of the bullish wave requires holding above 1765 and the most important above 1746.4.

The expected trading range for today is between 1760 support and 1795 resistance, and the expected trend for today is Bullish.​

 

[Solid ECN]

Silver - Growth is possible.

On the daily chart, a downward correction of the higher level ended as the second wave (2) and the third wave (3) forms, within which the first entry wave of the lower level 1 of (3) develops. Now, the wave iii of 1 is developing, and the wave (v) of iii is forming.

If the assumption is correct, the XAGUSD pair will grow to the area of 24 – 25. In this scenario, critical stop loss level is 22.26.

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[Solid ECN]

XAGUSD - Silver Institute predicts metal supply shortage​

The increasing gap between supply and demand in the market can also support the position of the asset: back in early October, the Silver Institute predicted that in 2022 the demand for the precious metal would increase by at least 5.0% and reach 1.11B ounces with a relatively constant supply, which will amount to 1.09B ounces, provoking an increase in prices. At the end of last week, experts revised their preliminary estimates of demand, raising it sharply by 16.0% to 1.21B ounces, which means an even greater shortage of supply, which, according to forecasts by the statistics portal Metals Focus, could reach 194.0 by the end of the year. Confirming the trend, the London Bullion Market Association reported a drop in silver stocks over the past year by a record 27.2%.

On the daily chart of the asset, the trading instrument continues the global correction, heading above the resistance line of the wide rising channel, and the technical indicators, despite the slowdown, keep a stable buy signal.

Resistance levels: 23.1, 24.4 | Support levels: 21.6, 19.8​

 

[Solid ECN]

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Crude oil price begins bullish correction​

Crude oil price keeps rising to breach the bearish channel’s resistance by today’s open and settles above it, to start bullish correction for the entire decline that started from 92.9 areas, on its way to test 75.63 as a first positive station.

Therefore, we expect to witness more rise in the upcoming sessions, and breaching the mentioned level will extend the bullish wave to reach 78.93 areas, while breaking 73.65 represents negative factor that will stop the correctional bullish trend and press on the price to decline again.

The expected trading range for today is between 72.50 support and 76 resistance, and the expected trend for today is Bullish.​

 

[Solid ECN]

XAUUSD - The price is in a correction, a fall is possible.​

On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum, and the development of the fifth wave (5) started. Now, the first entry wave of the lower level 1 of (5) has formed, within which the wave v of 1 has developed, and a local correction has started as the second wave 2 of (5).

If the assumption is correct, the price of the asset will fall to the area of 1719.7 – 1695.85. In this scenario, critical stop loss level is 1824.

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[Solid ECN]

XAUUSD - A fall is possible.​

On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum and the fifth wave (5) develops. Now, the first entry wave of the lower level 1 of (5) has formed, within which the wave v of 1 has ended, and a local correction is developing as the second wave 2 of (5).

If the assumption is correct, the XAUUSD pair will fall to the area of 1719.70 – 1695.85. In this scenario, critical stop loss level is 1824.

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[Solid ECN]

XAUUSD - A fall is possible.​

On the daily chart, a downward correction ended as the fourth wave of the higher level (4), within which the wave C of (4) formed as a momentum, and the fifth wave (5) develops. Now, the first entry wave of the lower level 1 of (5) has formed, within which the wave v of 1 has ended, and a local correction is developing as the second wave 2 of (5).

If the assumption is correct, the XAUUSD pair will fall to the area of 1726.2 – 1699.25. In this scenario, critical stop loss level is 1833.20.

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[Solid ECN]

Gold Technical Analysis​

Gold price faces negative pressure now, to head towards potential test to the key support 1824.50, affected by stochastic negativity, while the EMA50 continues to provide the positive support to the price, to keep the bullish trend scenario valid conditioned by the price stability above the mentioned support and the most important above 1812.25, reminding you that our waited targets begin at 1850 and extend to 1900.

The expected trading range for today is between 1830 support and 1865 resistance.​