By Anton Eljwizat – Platinum made modest gains yesterday on safe-haven buying on contiuned worries about euro zone debt, tension on the Korean peninsula and in the face of expectations of continued dollar strength. However, I will illustrate below that the platinum may very well be heading for a reversal. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and Williams Percent Rang.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 4: The Williams Percent Ranges is showing that this pair is heavily over-bought and may be experiencing strong downward pressure.
Platinum 8-Hour Chart
Forex Market Analysis provided by Forex Yard.
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