PLATINUM TODAY: Consolidating today, but looking stronger overall

By
In Bullion Desk News
  0
Short Term:
Medium Term:
Long Term:
Resistances:
R1915 DTL (broken at)
R2926 Oct 2016 lows
R3991 Neckline triggered at
R41009 20 DMA
R51021 Nov 9 peak
R61029 Feb 9 peak
R71045.50 Recent high
R81090 May 2016 peak
R91195 Aug 2016 peak
R101289 Jan 2015 peak
Support:
S11009 20 DMA
S21009 UTL
S3977 Neckline
S4948 Jan 19 low
S5911 Feb low/HSL
S6889 Low so far
S7811 Jan low
S8807 Support 2004
S9745 2008 low
Stochastics:Bullish but converging
Legend:

BB – Bollinger band
DMA – daily moving average
Fibo – Fibonacci retracement level
(H)SL – (horizontal) support line
H&S – head-and-shoulder pattern
U/DTL – up/downtrend line

Technical Comment

Analysis

  • The rebound has triggered a potential inverse H&S; the count from this pattern is $1,108 per oz.
  • Having broken higher in recent weeks, prices pushed higher again on Friday February 24 to set a fresh high for the year at $1,045.50 per oz.
  • The recent pullback found support around the UTL and the 20 DMA; although both were breached intraday, the market avoided closing below the lines.
  • The stochastics have jumped higher having turned quite bearish last week, but they are converging again to cross lower, so it may be that prices need to consolidate again after the run up to set fresh highs. 
  • Overall we expect the uptrend to continue.

Macro factors

Investor interest in ETFs has flattened out again after a show of strength in the middle part of February – holdings have climbed to 2.37 million oz from 2.33 million oz on February 8.

The funds’ stance had turned a little more bullish in January and that ran until early February. However, in recent weeks the net long fund position (NLFP) has dipped. Both the gross long and gross short positions are in low ground so there is potential for either side to pick up. On balance, we would expect funds to get longer, but having hit resistance in February, the funds seemed in no hurry to extend exposure. That said, that may have changed with prices setting fresh highs for the year again.

 

Conclusion

Now that prices have pushed higher again, we would not be surprised to see investment interest pick up. On the chart, prices look well placed to extend gains.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

The post PLATINUM TODAY: Consolidating today, but looking stronger overall appeared first on The Bullion Desk.

Read More
Source: Bullion Desk News

Recent Posts