By Rita Ruvinski – Platinum advanced to a new record high, as prospects for a further decline in the dollar boosted investor demand for precious metals as alternative holdings. Platinum prices jumped $10.10 to $1,632 an ounce on Monday reaching its highest level since May 18th. Technical indicators show there are good chances platinum prices will increase further with a potential price of $1675.00 in sight.
The chart below is the Platinum 4-hour chart:
- The technical indicators used are the Bollinger Bands, the MACD , the Relative Strength Index (RSI) and Fibonacci retracement lines.
As we can see in the chart, the price is currently testing the 100% Fibonacci retracement level and may possess the momentum to break past.
- The RSI is above 60. It could either mean that the price is in a lasting uptrend or just overbought, in which case a correction could occur (look for bearish divergence in this case).
- The MACD is positive and above its signal line. The configuration is positive.
– A tightening of the chart’s Bollinger Bands confirms the bullish volatility in the pair.
- The next resistance levels are placed at the 1675.5 and the 1692.5 levels.
- The next support levels are placed at the 1620.50 and the 1609 levels.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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