JSE:AMS Anglo American Platinum Long Accumulation

AMS has been in a range since 2013. Signs are that this range has been an accumulation range after a decline. After a spring in Phase C we have had a test on low volume in Phase D and signs of strength (SOS) according to a Wyckoff analysis. In Wyckoff language the SOS could be seen as a jump of the creek. There is currently a pause at the top of the trading range and today has seen a strong move on the daily possibly indicating that the markup in Phase E could start with sum increased volume on green bars.

Comment:

On the Daily TF a smaller Trading Range (TR) at the top of the Weekly TR (Back up). We see declining volume on declines and increasing volume on advances, which results in divergence on the Volume RSI. AMS has been the leader in the sector but with the strength of IMP has recently been playing second fiddle. We see some volume at the test of the smaller TR which probably indicates that a test of this level will occur again and the TR will still continue in the short term.

Comment:

After a strong markup, AMS there has a been a BC, AR and ST indicating that a TR has formed. Price still looks strong and this is possibly only a reaccumulation TR. Will watch how it develops.