Angloplatinum (AMS) Long and Short Play
AngloAmerican Platinum is flashing a bearish sign early into the weekly cycle, it could be leading platinum metal into a bearish trend. On the daily chart time frame we would have wanted price to not break the low on 22 November but as of today (14 December) price has made a lower low.
The probable route now would be price action guided by the megaphone depicted by the blue lines, this becomes a high probability move if 22 November was not a daily cycle low (NB previous daily cycles out of a weekly cycle were of length 57 days as is 22 November low), then we can expect a daily cycle low of close to 90 days. What to do amid uncertainty:
1. Reaction of price on the lower blue trendline can allow a long position with target orange line, by then RSI 14 should be oversold.
2. Reaction of price action at orange line, if it breaks, hold long & watch for R1735 reaction, rejected, close long & go short.
There is some good money to be made by trading price action this way though it requires one to be of nimble fingers.
The probable route now would be price action guided by the megaphone depicted by the blue lines, this becomes a high probability move if 22 November was not a daily cycle low (NB previous daily cycles out of a weekly cycle were of length 57 days as is 22 November low), then we can expect a daily cycle low of close to 90 days. What to do amid uncertainty:
1. Reaction of price on the lower blue trendline can allow a long position with target orange line, by then RSI 14 should be oversold.
2. Reaction of price action at orange line, if it breaks, hold long & watch for R1735 reaction, rejected, close long & go short.
There is some good money to be made by trading price action this way though it requires one to be of nimble fingers.
Comment:
AMS is now moving upwards but now under the 200WMA which will act as resistance around R1,385 price level. Price can attempt the orange declining resistance, a place for another short entry. Platinum is already failed and after a short bounce should go down while $DXY moves higher.
Trade closed: target reached
