Platinum - last bullish wave before ABC correction - SHORT entry
After platinum has rallied in the last week, the indicators and market behavior are heading for a correction.
Psychological / Fundamental Analysis
The world economy is coming to an end and the industry continues to go down what can be seen in the rising crude oil stocks and the falling oil price. More and more people are investing in precious metals such as gold and platinum for security reasons. As platinum is close to the 10-year low in comparison to gold, further growth is to be expected, however, it should not be forgotten that platinum has risen in the last 8 weeks and therefore the chance of a correction is quite high.
Technical analysis
In the daily chart platinum approaches the 200 day moving average line which is a significant resistance (at 875 $ - 880 $). I expect from here a first correction / insert of the ABC correction wave down to $ 860. From here a small bullish correction before we could see the final bearish correction to $ 847. From here I expect again strong bullish growth because platinum is as already mentioned only about $ 50 from the 10 year price low.
There is also the possibility to trade the last upward wave when the price moves 860 $ at the beginning of the week, from here is a good long entry with low risk. Take profit from $ 875 up to $ 880. The overall risk of this trade is significantly higher than the short trade mentioned above.
MACD: no bearish crossing of the main lines yet and more room to grow, I expect to see some bearish trend by the end of next week.
RSI: Near the overbought zone but still room to grow, I expect the turnaround at the end of next week as well.
Psychological / Fundamental Analysis
The world economy is coming to an end and the industry continues to go down what can be seen in the rising crude oil stocks and the falling oil price. More and more people are investing in precious metals such as gold and platinum for security reasons. As platinum is close to the 10-year low in comparison to gold, further growth is to be expected, however, it should not be forgotten that platinum has risen in the last 8 weeks and therefore the chance of a correction is quite high.
Technical analysis
In the daily chart platinum approaches the 200 day moving average line which is a significant resistance (at 875 $ - 880 $). I expect from here a first correction / insert of the ABC correction wave down to $ 860. From here a small bullish correction before we could see the final bearish correction to $ 847. From here I expect again strong bullish growth because platinum is as already mentioned only about $ 50 from the 10 year price low.
There is also the possibility to trade the last upward wave when the price moves 860 $ at the beginning of the week, from here is a good long entry with low risk. Take profit from $ 875 up to $ 880. The overall risk of this trade is significantly higher than the short trade mentioned above.
MACD: no bearish crossing of the main lines yet and more room to grow, I expect to see some bearish trend by the end of next week.
RSI: Near the overbought zone but still room to grow, I expect the turnaround at the end of next week as well.
The analyses provided are for informational purposes only and do not constitute financial advice or recommendations to buy or sell anything. The information presented is based on personal research and interpretation.
