Platinum is falling very nicely from top and going down as we were expecting in our last couple of posts. It is forming another breakdown setups.
Watch for price action before the breakdown and look for sell or sell on breakdown.
I try to see precious metals through different lenses, happy for you joining me and see things differently.
The above chart is the Palladium / Platinum Ratio, it shows how Palladium is expensive, and how Platinum is cheap.
The Palladium / Platinum Ratio rose from 0.2 to 1.7 today.
Buy Platinum, it's very cheap.
Avoid Palladium for now, it's very expensive.
Cheap, Platinum is cheap.
Today, we look at Platinum from an other angle, the Platinum / Silver Ratio.
As the chart above show, the Platinum / Silver Ratio began above 130 and decreased down to 39 in 2011, then back up to 80, then down to 50 today.
Also note the down trend line.
The chart speak: "Platinum is cheap relative to Silver."
The Ratio may decline to...
A bright Decade ahead for Platinum.
The above chart is for Platinum priced in terms of gold.
Platinum / Gold Ratio .
It shows a falling wedge, and it's almost completed.
The Platinum/Gold Ratio had fallen from about 2.4 at 2007 to 0.6 today (2019) forming a wedge.
The lower part of the chart is the Percentage Price Oscillator PPO, it's a momentum...
We can see a potential dragon pattern emerging on the platinum chart. It has already hit the first target of 0.886 and based on the most recent retrace there is a possibility of an AB=CD continuation . Next targets are 1.13, 1.272 and 1.68 extensions however dragons can easily fly to 2.618 or even higher. Failing @ 920 level (or lower) will invalidate the idea.
XPTUSD sitting at support level from recent consolidation. Also, back-testing descending trend-line from previous breakout.
Resistance is up near $1960, offering a decent RR setup, depending on where on places their stop.
One final consideration.... We're heading into seasonal strength. While there are many fundamental details to consider, I like the odds...
If price breaks above B wave then enter trade long up to resistance.
Price is in an ABC pullback as can be seen, we want confirmation that price will continue up, this confirmation is the break of B wave, however needs to watch price as we can see if struggling on the weekly 200ema.
Be patient and wait for the break
We play with Smartmoney concepts, that means that we look mostly on PA to determine what will happen in future.
As we all know, price is moved by BIG players: Banks, Institutional traders, HFT bots (we call them all of them SM).
They can't play as we do, cause of a HUGE lot sizes, so cause of that they need to SELL to BUY and BUY to SELL for...