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Sunday, January 20, 2013

Platinum and Gold

Since both have seen bullish action lately, I thought I'd compare Platinum and Gold.

The 5-Year Weekly chart below of Platinum shows that price has stalled at a confluence of an apex of a large triangle, a 60% Fibonacci retracement level, and the upper Bollinger Band. Note the recent volume spikes. If price can break and hold above 1714, it has a chance of reaching the top of the triangle at 1760ish, or 1800 (which is the upper Value Level of the Volume Profile shown along the right edge of the chart).

The 5-Year Weekly chart below of Gold shows that price has stalled around the 50 sma (red) at the 1660 level. The next major resistance level is at 1800, provided it can break and hold above the mid-Bollinger Band at 1717.30.

The 3-Year Weekly chart below shows Platinum, depicted in candles as the primary instrument, with Gold as secondary and shown as a line. Both Platinum and Gold have generally tended to move in tandem during this timeperiod. Platinum has stalled at a downtrend line, but the RSI is now rising and above 50.00 and the MACD has crossed up. At the moment, it is outperforming Gold. A break and hold above the downtrend line should favour continued buying in Platinum.

The 3-Year Weekly chart below is a ratio which depicts Platinum's relative strength as compared to Gold. It shows, more clearly, its recent strength on rising RSI, MACD, and Stochastics confirmation.

In conclusion, both Platinum and Gold have similar resistance/target price levels, although Platinum has been a bit stronger recently. It may be worthwhile watching both of them, in order to see which one may produce the first clue as to either continued strength (in both), or developing weakness (in both) during the next week(s) ahead.