Technical setup is bullish for platinum, Will the platinum continue rising?
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Indicator |
Value |
Signal |
|
RSI |
66.3917 |
Neutral |
|
MACD |
|
Buy |
|
Donchian Channel |
1038.76 |
Neutral |
|
Parabolic SAR |
946.67 |
Buy |
|
Fractals |
945.13 |
Buy |
|
MA(200) |
881.86 |
Buy |
Chart Analysis
On the daily timeframe the XPTUSD: D1 has has hit all-time high above rising 200-day moving average MA(200).
We believe the bullish momentum will resume after the price breaches above the upper boundary of Donchian channel at 1038.76. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below last fractal low at 945.13. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (945.13) without reaching the order (1038.76), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis
Analysts forecast for platinum market in 2020 is bearish. The World Platinum Investment Council Q3 report estimates there will be a global market surplus of 670,000 oz in 2020 due to a 1% decrease in supply and a 10% decrease in demand. Analysts at UBS estimate platinum demand will decrease due to decreasing demand for auto sector, forecasting also a lower demand for jewelry. On the supply side Zimbabwe has announced plans to steeply increase platinum output, almost tripling the current output to 2.79 million ounces by 2024. Zimbabwe is the world’s third-largest platinum-group metal exporter. Nevertheless the current technical setup is bullish for platinum.
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