Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
According to the latest COT Report Platinum may be going for some bearish momentum, due to the increase of short contracts. Historically looking, the COT contract size area that we are in, has high chances to reverse towards higher quantities of long contracts.
From a monthly perspective XTPUSD has been in a closed triangle structure since 2008 and we can finally see its end. But before that another touch towards its upper-trendline must happen. The monthly critical plays the role of the bottom part of this closed triangle. On the monthly time frame, February reached new unnatural lows which got rejected strongly and the price returned once again to the monthly critical zone.
Since the end of May, XPTUSD is in a range that formed a wide-angle formation. A critical moment of this scenario will be the 800.000 level. We need to see a strong rejection there. A good entry point will be the correction from the daily critical area towards the 4h critical one.
A second critical point is the daily critical area around the 860.00 mark. It can be viewed not only as a support/resistance zone, but it also aligns perfectly with the 0.618 Fibonacci retracement from the price drop in March.
Our target will be the psychological 1000.000 mark. This needs to happen in order to reach the equilibrium price of this pair.
If the crisis deepens the usage of Platinum will likely jump and logically its price as well. It is used in many industries that will stay unaffected from a future crisis.
If you liked my analysis or you want to continue the discussion- feel free to leave a like and a comment. Thank you!
Happy trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
According to the latest COT Report Platinum may be going for some bearish momentum, due to the increase of short contracts. Historically looking, the COT contract size area that we are in, has high chances to reverse towards higher quantities of long contracts.
From a monthly perspective XTPUSD has been in a closed triangle structure since 2008 and we can finally see its end. But before that another touch towards its upper-trendline must happen. The monthly critical plays the role of the bottom part of this closed triangle. On the monthly time frame, February reached new unnatural lows which got rejected strongly and the price returned once again to the monthly critical zone.
Since the end of May, XPTUSD is in a range that formed a wide-angle formation. A critical moment of this scenario will be the 800.000 level. We need to see a strong rejection there. A good entry point will be the correction from the daily critical area towards the 4h critical one.
A second critical point is the daily critical area around the 860.00 mark. It can be viewed not only as a support/resistance zone, but it also aligns perfectly with the 0.618 Fibonacci retracement from the price drop in March.
Our target will be the psychological 1000.000 mark. This needs to happen in order to reach the equilibrium price of this pair.
If the crisis deepens the usage of Platinum will likely jump and logically its price as well. It is used in many industries that will stay unaffected from a future crisis.
If you liked my analysis or you want to continue the discussion- feel free to leave a like and a comment. Thank you!
Happy trading!