At current levels, the reward-to-risk for a buy/long on Platinum is starting to appear compelling.
Time Frame: Medium Term
The bear flag we highlighted in May has fully ‘played out’, with the commodity now being 21% off its YTD high. At current levels, it is trading at levels of interest, that being:
- The lower boundary of its 200-period linear regression channel.
- The 61.8% Fibonacci retracement level, of which the current test of the zone is the second in the last 6 weeks.
A ‘conviction candle’ above line A_B would suggest a reversal of trend, from bearish to neutral and then possibly bullish .
Buy on break of line A_B (approximately above $1063 from current levels)
Exposure also possible via the Aberdeen Standard Physical Platinum Shares ETF ( PPLT )