Platinum has broken out and is now either consolidating or correcting. In this screencast I show how I approach it from a trend following perspective.
Disclaimer: This is not a recommendation to trade securities. Should you do so, your risk and losses are your own. In other words sue yourself if you lose your money.
The analysis predicts a 2% downward spike movement. However, I am already waiting for the exchange rate. The white dashed line is the ATR axis of wave movements. Which have functioned as resistance axes so far. I look forward to this now. Target price increase is 915 usd.
Amma telling you lot - get ready for PLATINUM!! Avoid dithering. Look at the crazy structure level and support. Yes - price could fall out as well as it could break north. Nonetheless this is an opportunity for a controlled loss (aka stop-loss) on a lower time frame e.g. 1H to 6H. No guarantees - no predictions - no bull! LOL.
Platinum builds a rising wave structure. You are currently in an accumulative phase. You can spike it down, but we don't assume a permanent downward decline. The exchange rate may move in a double rising wave structure, and this wave structure will double, and the exchange rate will accelerate. The goal of the exchange rate is 1100 usd. Forward rise predicted.
Before the XPTUSD rise. It is worth a few moments to deal with the price of platinum. Platinum mines in South Africa are extremely low priced. Slowly this can turn out. At the same time with the strengthening of platinum and palladium. The price of XPTUSD has come to a consolidation stage. It has a low ATR, so too much movement is not expected in the future...
The price of Platinum was upward. The price of XPTUSD rose from the correction level of 905 usd. The rising wave (BC) is similar to the size of the previous (OA) waveform. If the assumption is correct, the current target price for the move is 1044 usd.
Price action converging and a breakout looks imminent
Overall sentiment has turned very bearish as speculative Nymex funds positioned with sizeable short bets
There is value and the risk reward to the upside looks favourable
On a larger scale, it seems that the metal is about to produce a large W correctional move higher
Platinum seems to have revered a skewed Head And Shoulder pattern in December and its upward Trend is now converging towards the first notable resistance.
We are still well within last year's High and Low so more action can be expected.
The key point for me at the moment is waiting to see how the price reacts to the level...