Today I want to do technical analysis of platinum, which of course is another precious metal just like gold and silver.
As always I prefer to look at a weekly chart:
What we see in the chart is that prices of platinum headed south mid 2014.
They then were in a downtrend for something like 18 months when they had a come back.
The first half of 2016 the overall trend of platinum was up, but that changed around the US elections when prices headed down again.
What happens when prices are moving up and down like this is that neither the bulls nor the bears have the upper hand.
Rather the battle lines are only getting closer.
What that means is that a lot of tension is building up in the chart and when that tension is finally relieved the move will become spectacular.
The trouble is that I don’t know in which direction it will move. My personal hunch is that it will move higher, but that is not a completely unbiased opinion,
My personal odds are that prices will continue up after the chart has broken the descending trend line.
If you believe in higher prices it’s a very good time to enter.
If you would like to know more about the basics of Technical Analysis please read this guide.
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