Platinum reached its highest price since June 2021 on 9 June above $1,200 amid a major shortfall in supply. The World Platinum Council expects insufficient supply of nearly a million ounces this year amid disruption in South African mining and a surge in demand from China.
Trading a chart like this is obviously challenging for many strategies because it’s difficult to predict how much longer momentum might continue; eventually the price will need to consolidate or retrace. The 50% daily Fibonacci retracement around $1,050 would traditionally be an obvious place to buy in but given the strength of the recent gains it’s questionable whether the price might just move below there if there’s a deep retracement.
February 2021’s high around $1,335 would be an equally obvious potential resistance. However, under the circumstances of such strong movements and clear overbought conditions, confident new buyers might strike a compromise between buying the peak and waiting for the bottom of a potential retracement. The reaction to American inflation on 11 June might make the situation clearer.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
Trading a chart like this is obviously challenging for many strategies because it’s difficult to predict how much longer momentum might continue; eventually the price will need to consolidate or retrace. The 50% daily Fibonacci retracement around $1,050 would traditionally be an obvious place to buy in but given the strength of the recent gains it’s questionable whether the price might just move below there if there’s a deep retracement.
February 2021’s high around $1,335 would be an equally obvious potential resistance. However, under the circumstances of such strong movements and clear overbought conditions, confident new buyers might strike a compromise between buying the peak and waiting for the bottom of a potential retracement. The reaction to American inflation on 11 June might make the situation clearer.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.