Don’t Buy That Wedding Band Yet – Platinum is on the Edge

There is always a lot of press about Gold, metal for safety and inflation traders, and Copper, the metal with a PhD in economics. Even Silver takes the stage occasionally. But that other high priced working class metal, Platinum, $PL_F, always gets the short stick. Yes it has become popular for jewelry, but this metal has its roots in the car industry, catalytic converters to be exact. And it looks like it may be following General Motors and and Ford lower into the abyss.

The weekly chart above shows a rounding top forming and a high print in April 2011. Since then then it is off nearly 50%. The Fibonacci lines show it has bounced there at 1364 a couple of times. But as it sits there now it has a falling Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is falling as it hits the zero line. Both support a continued move lower. The Shorter Simple Moving Averages (SMA) are also rolling lower with the Bollinger bands showing the path of least resistance is down. Under 1364.40 the next support areas are at 1290 and 1100 with the 61.8% retracement level of 1219.90 in between.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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