Metals Charts
Jack Davis | Mar 06, 2017 12:28
Originally published by Chamber of Merchants h2 Platinum/h2
On the weekly chart, platinum is attempting to make a “golden crossover”, where the 50 day moving average line cuts through the 100 day moving average in an upward fashion. That is usually a “signal” to buy. You’ll see that the silver was dumped with this signal. Regardless, the weekly chart on platinum looks promising.
The daily platinum chart shows that it has broken through resistance. Platinum must recover $1000 USD and trade above that level to be considered bullish.
The cloud balance chart for platinum shows that it was rejected at the crucial $1040 USD level and that it has broken the second support at $1000. The cloud balance chart indicates that the trend is still bearish.
The cloud balance on a different sensitivity indicates the same thing, $1000 is a critical level that must be recovered in order to consider platinum as a bullish trade.
Silver was shoved down below its moving average support and must recover $18 USD to be considered bullish. Without recover that level, the next support is around $17.50 USD. Also note the golden crossover and that it was used a signal to lure in more traders, only then to be dumped at volume.
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The cloud balance chart indicates that Silver was rejected at the crucial $18.50 USD level. The trend is still bearish although $1750 is acting as support.
On a different sensitivity level, the cloud balance chart shows that silver’s bounce was positive but that $18 has now become an intense resistance zone. Recovery of $18 USD would be bullish.
Gold has been rejected at $1260 and was not ready to break out. The heavy support is at $1230 USD. To close below $1230 USD would be a confirmation of the “sell the high” strategy.As long as gold remains above $1230, there is still a chance of recovery above $1260 USD. Below $1230 USD gold’s weak support would be at $1220 roughly.
Gold failed to break and hold above 2 long term moving averages. The golden crossover is nearby on the daily chart (yellow crossing the dark blue line). This is an area where a bounce may occur, however, remember silver was dumped with this signal. The same may or may not happen for gold.
I will not be trading into the sell off of bearish sentiment. I’ll wait for a few days to see how it develops. Gold miners are certainly the long term winners, but that does not mean I need to enter yet.
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