Platinum Price Technical Chart Analysis 22nd June 2018 / Commodities / Platinum

LatestPrice – $873.30

Pattern – a downtrend has clearly been in force…one that Ibelieve ended today with a low at $857.60. And a bullish outside reversalcandle to go with it. This will obviously need follow through to the upsidewhile there may be some consolidation of this candle in the very immediateterm.

BollingerBands – price looks like it may be about to leave the lower band but it hasn’tyet. A clear break higher will likely confirm the low.

Fibonacci– price has been trending down generally between the 61.8% and 76.4% angles.Each consecutive low has been inching closer the 76.4% angle as the downtrendhas played out. If I am correct in thinking today was the low then price shouldfinally overcome this 76.4% angle and move up to the 88.6% angle where someresistance may come in before racking above there too.

Movingaverages – a bearish crossover has just occurred but this is also the exactmoment where price rallies, if only a bear rally which I think this will be.

RSI– a triple bullish divergence has formed at this price low which is often seebefore a solid rise.

MonthlyChart

Pattern – we can see the 2016 low was a test of the previouslow which occurred during the 2008 commodities bust. While I believe price willeventually trade below that 2008 low I believe that time is not yet. Instead, Ifavour am ABC correction is in process with today the wave B low with priceabout to embark on a rally that ends in a wave C high. I favour this wave Chigh to only marginally clip the wave A high of $1199.

Fibonacci– the wave A high was around resistance from the 38.2% angle while thisexpected wave B low is at support from that same angle. If I am correct in arally commencing now then my target for the wave C high is the 61.8% angle.This angle coincides with the 38.2% retracement level of $1234 towards the endof 2018. This is some timing and price.

RSI– price is threatening to move into oversold territory but I doubt that willhappen and it won’t if price rallies now. The 2016 low saw a new low on thisindicator and I would like to see a bullish divergence form before the overalldowntrend is over. All in good time.

Summingup – I expect a solid rally now which has the potential to put on around 40%over a relatively short period of time.

By Austin Galt

www.thevoodooanalyst.com 

Austin Galt has previously worked as a stockbroker and investment banker while studying technical analysis for over two decades. He is also the author of the book White Night: A Colombian Odyssey

Email - info@thevoodooanalyst.com 

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