IMP: Entering the Sell the Bounce Phase
Given the price action in the USD dollar index ($DXY), we can expect downward pressure on precious metals, Platinum already has a failed daily cycle, meaning the platinum miners will follow. Impala has found support on the 200DMA which will attract traders.
As can be seen, price fell out of a rising wedge (bearish), so the bounce in price has can either:
1. Rise to back test the wedge support it fell from.
2. Move to touch the declining trendline intersecting the wedge support line.
A swing high on the bounce gives room to open/add to short position from where price is expected to break through the 200DMA. The lower trendline is a good place to close shorts & seek a long.
As can be seen, price fell out of a rising wedge (bearish), so the bounce in price has can either:
1. Rise to back test the wedge support it fell from.
2. Move to touch the declining trendline intersecting the wedge support line.
A swing high on the bounce gives room to open/add to short position from where price is expected to break through the 200DMA. The lower trendline is a good place to close shorts & seek a long.
Comment:
Price tried to bounce at lower trendline support but failed, now opens the opportunity for a deeper correction. SA platinum miners have failed to track platinum well likely due to production falling amid shortage of power.
Comment:
Looking at where the DXY (Dollar index) is, there is scope for a reversal upwards and confirm a weekly low. This would warrant a pairing with another platinum miners to lock in profits.
Trade closed: target reached