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Platinum Trading within a Weekly Triangle

by on November 20, 2013 4:18 pm GMT
 

Platinum is leading the precious metal declines with a $19.1 slump in prices. The precious metal group fell after the release of consumer pricing data that showed a fall into negative territory a -.1 percent in October.

Price action is trading into the apex of the triangle and halted at support present within the pattern at $1,400 per ounce. There are two scenarios:

If platinum breaks through the weekly triangle support, it will trade down to the supporting ascending triangle at $1,380. This would be platinum’s last line of defense before a potential decline to $1,330 per ounce – prices not seen since July.

A decline in prices is pulling the moving averages lower. The current weekly candle represents are large $142 price range.

The second option is that $1,400 creates an environment for some demand. Topside potential is seen at $1,426 and $1,446 (the 20 EMA). If the 20 EMA is over taken then the descending trend line could be challenged.

A sloping, neutral RSI and upward slopping -DMI and ADX is suggesting more downside awaits.

WK Chart of PL

WK Chart of PL