Platinum weaker but getting rapidly oversold versus Gold | 19 November
Platinum Price Forecast relative to Long Term Monthly - Medium Term Weekly - Short Term Daily - and Hourly (not shown) data.
(Previous week in brackets)
|PT Trend||↓ (↓)||↓ (↑)||↓ (↓)|
|PT % Risk
|32 (35)||50 (75)||16 (45)|
Portfolio allocation 40% (40%)
26 November 2021 close Also with our beloved Platinum, since 2020, we're back in the waiting room. Whilst the position is still well above the original weighted entry level, current price action is somewhat frustrating but here too, nothing indicates a major trend change from the 2020 low, besides the still strong outlook for Platinum versus Gold in the anaylsis of the Gold to Platinum ratio. The two week 11% price fall actually makes Platinum look quite interesting again relative to Gold but current price action calls for 'hold' rather than adding at these levels whilst we cannot exclude another price drop in coming days or even weeks. We were down to 900 only 2 months ago, rallied 20% to $1100/oz, and now back in consolidation range. We still expect that major breakout to come since we have yet to see technical bearish divergence in the longer term time intervals. And this applies to our primary tools Relative Strength Index, MACD and Stochastic analysis. These bearish divergence indications always arrive, almost without exception.
19 November 2021 close A rapid 5% drop for the week, caused the Platinum Monthly reading to turn down. As Platinum look quite strong longer term and relative to Gold and Silver, The physical platinum precious metal also remains a strong hold. This is unlikely to change until we see the typical overbought signals that determine higher allocation risk. When Platinum bottomed and initially bounced sharply in March 2020, the technical evidence was a strong confirmed bullish divergence. We await the next lift into the $1400-$1500 range. Our general outlook for this price event is more towards the end of the first half of 2022. But it may happen earlier in the current uptrend cycle.