Platinum: The risk of a corrective rally is high – Commerzbank
|Platinum has met initial downside target offered by the 200-week ma at $929. This coupled with a triple divergence of the daily RSI suggests that the down move has exhausted for now, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, reports.
Triple divergence of the daily RSI
“Platinum has met its initial downside target of the 200-week ma at $929. The market has traded through here but the new low of $901.68 has not been confirmed by the daily RSI again and this is now triple divergence.
“Rallies will find the 55-day ma at $1029 now offers decent resistance and the market will need to regain $1046 (January 2020 high) to reassert upside dominance.”
“Below 900, we would allow for losses to the $871.75 61.8% retracement and potentially the $825 September 2020 low. The 78.6% retracement lies $744.”
“A close above $1046 is needed to negate the current push lower and allow for a deeper recovery to the 200-day ma at $1127.”
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