Technical Analysis – Platinum weekly – Upside price pressure rising

Jan 7, 2015 - 9:27 AM GMT
by
Short Term:
Medium Term:
Long Term:
Resistances:
R1 1,214 7 WMA
R2 1,242 DTL
R3 1,245 November high
R4 1,255 December high
Support:
S1 1,187 October low
S2 1,178 November low
S3 1,176 December low
S4 1,120 Lower BB
Stochastics:
Legend:

Fibo – Fibonacci retracement 
MACD – Moving average convergence/divergence
WMA – Weekly moving average
BBs – Bollinger bands

Analysis

Re-release of Weekly Technical

  • Platinum continues to consolidate either side of the 7 WMA at $1,213 – a sign of sort-term indecision. 
  • The stochastics, MACD and momentum are all heading higher, signalling reduced downside strength.
  • The BBs are coverging – breakout pressure is rising. 

Conclusion

  • Platinum is testing support below the 7 WMA on reduced selling strength. 
  • The price divergence signals a potential price reversal.
  • Failure to stay below the 7 WMA would confirm a shift in short-term pressure to the upside, turning us neutral-positive – we would then cite resistance from the DTL as the next upside target.
  • Failure to break resistance from the 7 WMA, however, would tell us that further consolidation is required while breakout pressure builds. 
All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.