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    Technical Analysis XPTUSD : 2016-06-14

    Platinum falls behind gold

    Gold and platinum price ratio has reached the level of 1,293 and has come close to the historical high of 1,344 set in January 2016 . The gold has advanced 8% while platinum added 17% since the start of 2015. In general, higher demand for precious metals is fuelled by Brexit concerns which referendum on the matter being scheduled on June 23. Another factor is delay with Fed rate hikes. Will platinum advance?

    The chances for the Fed rate hike on June 15 are just 3% and for July meeting are below 20%. Meanwhile, the US 10-year yields hit their low since end of 2012 at 1.6% a year which is close to the US inflation that was 1.1% year on year in April. This makes the precious metals more appealing for investment. Holdings in the largest gold bullion ETF SPDR Gold Shares reached the highest since October 2013 of 893.92 tonnes on Friday. The US May inflation data will come out on June 16. This year the global platinum deficit of 195 thousand ounces is expected compared to its surplus of 54.4 thousand ounces in 2015.

    Brent_Rub

    Brent_Rub

    Brent_Rub

    On the daily chart XPTUSD: D1 has approached the resistance of the downtrend. Previously it failed to break down through its 200-day moving average and started rising. The MACD and Parabolic indicators give signals to buy. RSI is neutral and below 50. The Bollinger bands have widened which means higher volatility. The bullish momentum may develop in case the platinum surpasses the last fractal high and the resistance of the descending channel at 1021. This level may serve the point of entry. The initial stop-loss may be placed below the support of the downtrend, the Bollinger band, Parabolic signal and the 200-day MA 940. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 940 or 966 without reaching the order at 1021, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

    Position Buy
    Buy stop above 1021
    Stop loss below 940 or 966

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