Keep an eye on Palladium here... looks to be consolidating in a neat bullish falling wedge formation. More importantly, the RSI is making a series of higher highs (divergency) which is warning of a rally to come...
Might be worth looking at a couple of the palladium/platinum plays... Sibanye, Impala, AngloPlat, Northams etc which would be beneficiaries if this plays out
Head and Shoulders in the making for Northam PLatinum
Since it broke out of the downside and entered into a rising - sideways consolidation - the buyers have just not been able to keep the price up.
We are starting to see negative and bearish signs technically.
21>7 - Bearish
Price approaching 200MA
RSI<50 - Bearish
Target R145.18
CONCERNS:
The main concern is...
Inverse Cup and Handle on Northam Plats after an extended year of downside.
The MAs are almost perfect 7>21
But price is still below 200MA.
Target R221.18
Bullish
Regards
MATI Trader
JSE:NPH is at an area of value; the stock may either find support here or break lower. NYMEX:PL1! is weak, the chance of breaking lower is higher than that of a bounce. No position on platinum names at the moment.
