Platinum Intermediate Low (D)
Created on Friday, 02 October 2015 10:35
Written by Austin Galt
Platinum looks like it may have made an important low today so let’s briefly check out the daily chart.
PLATINUM DAILY CHART
The lower horizontal line denotes the previous triple bottom as outlined in previous analysis. Triple bottoms rarely end trends and this is no exception.
Considering this triple bottom is coming after a serious downtrend has already taken place, I don’t favour a strong continuation to the downside. The two scenarios favoured were a quadruple bottom or a false break low. Obviously this looks to be the false break low scenario.
The Bollinger Bands show price dipped under the lower band a few days ago but wasn’t able to reverse back up and follow through to the upside and price has subsequently traded marginally low hitting a low today at $893.40.
Today’s candle was a bullish reversal which looks good from a bullish perspective. Follow through to the upside now will look even better.
I have drawn a Fibonacci Fan which shows price being recently rejected at the 88.6% angle and coming down to the 76.4% angle where support looks to be coming in.
This low has set up a triple bullish divergence on the RSI while both the Stochastic and MACD indicators are still bearish but look to be threatening a bullish crossover.
I expect a solid bear rally and price trading above the previous triple bottom level of $945 will look good while trading above the August 2015 high will look even better. This level stands at $1038 and is denoted by the upper horizontal line.
Once the rally is off and away we can look more closely at the bigger picture. But I believe we have an intermediate low at hand.