Platinum, interesting descending triangle
Platinum was the king of metals just a few years ago (in terms of price, not at all market cap!)
Gold has since then delivered a knockout to platinum and showed once again that gold = the true king.
The gold/silver-ratio shows that silver and other alternative metals are outpacing gold in this recent rally and that a shift might be emerging.
With all the global economic panic, negative yield-crisis, stock markets being in a parabolic bull run for an overextended period of time now. Precious metals will be more and more interesting to watch everyday.
Platinum however has been somewhat shy this rally. Looking at the chart we can see a descending triangle in the making for about 10 years!
I know a descending triangle is often a bearish sign.. but.. Looking at the 50 month moving average we can see that the price of platinum is trapped between this ma and the upper trend line of the descending triangle.
This makes the change of a break upward very very likely in my opinion.
Strategy:
I am deversifying my gold holdings (for long term) in silver for a good swing trade on the gold/silver-ratio and i am also taking a close look at platinum.
If the 50 month ma is proves itself strong and platinum breaks above 1000 dollars (out of the triangle) then this will be a very interesting trade.
If the triangle does not break upward then an opportunity to buy at the base support level of around 800 usd might emerge.
Lets see what the market decides to do! I can't wait...
Gold has since then delivered a knockout to platinum and showed once again that gold = the true king.
The gold/silver-ratio shows that silver and other alternative metals are outpacing gold in this recent rally and that a shift might be emerging.
With all the global economic panic, negative yield-crisis, stock markets being in a parabolic bull run for an overextended period of time now. Precious metals will be more and more interesting to watch everyday.
Platinum however has been somewhat shy this rally. Looking at the chart we can see a descending triangle in the making for about 10 years!
I know a descending triangle is often a bearish sign.. but.. Looking at the 50 month moving average we can see that the price of platinum is trapped between this ma and the upper trend line of the descending triangle.
This makes the change of a break upward very very likely in my opinion.
Strategy:
I am deversifying my gold holdings (for long term) in silver for a good swing trade on the gold/silver-ratio and i am also taking a close look at platinum.
If the 50 month ma is proves itself strong and platinum breaks above 1000 dollars (out of the triangle) then this will be a very interesting trade.
If the triangle does not break upward then an opportunity to buy at the base support level of around 800 usd might emerge.
Lets see what the market decides to do! I can't wait...
Comment:
Platinum is getting very close to the end of this large triangle, so the ranges are getting closer.
-On a smaller timeframe platinum is following a decent uptrend as shown in the
picture below.
-The MACD crossed bullish on the daily as well.
This is getting very interesting! My trading plan hasn't changed so I am still waiting for confirmation of breaking the upper resistance line before entry.
-On a smaller timeframe platinum is following a decent uptrend as shown in the
picture below.
-The MACD crossed bullish on the daily as well.
This is getting very interesting! My trading plan hasn't changed so I am still waiting for confirmation of breaking the upper resistance line before entry.
Comment:
Precious metal markets made a correction over the last few days. Nothing to worry about in the long term, the fundamentals have not changed.
The upper trendline of the triangle acted as resistance again. I expect a retest of this line in the coming weeks.
My plan has not changed. The one thing I don't want to see is the price exit out of the triangle sideways because there is still no clear trend if that happends. I'm looking for either a break to the upside or a retest of the lower suppor line before the triangle expires.
The upper trendline of the triangle acted as resistance again. I expect a retest of this line in the coming weeks.
My plan has not changed. The one thing I don't want to see is the price exit out of the triangle sideways because there is still no clear trend if that happends. I'm looking for either a break to the upside or a retest of the lower suppor line before the triangle expires.
Comment:
Very good start of the year for precious metals. Platinum broke out of the triangle and I will stick to my initial plan; I am building a position right now.
The upper trend line of the triangle now acted as obvious resistance and the 50 month MA did not act as support like i was hoping as for now.
This means that i have to be more patience for a while and wait on the sideline for a good buy opportunity to emerge in the future. I am waiting for either one of these 2 scenario's:
1 - The price stabilises around this level, gold finishes the correction and platinum will follow, retest the 50 month MA and maybe retest the upper trend line of the triangle again. I will buy in this scenatio ONLY if the upper trend line gets broken with a good close above it (at least ont he 4H or daily chart).
2 - The correction will go on for a while and platinum reaches the base support line of the triangle (@ around 800). In this scenatio I will buy every time that the price reaches this base support level. I might place a stop a little below the support for a little security because this still is a descending triangle after all.
Lets see what will happen, I will keep this post updated from time to time.