Trade Recommendation: Platinum/EUR
The Platinum/Euro pair (XPT/EUR) started its bull run in January 2009 when it took out resistance of 714. This triggered the rounding bottom reversal pattern on the monthly chart. The breakout attracted so much momentum that it became parabolic. This catapulted the pair to as high as 1,393.13 in May 2010.
At this price point, the market flashed bearish signals. It was in overbought territory. Moreover, the monthly candle was a huge spinning top implying indecision. Those who saw the writings on the wall began to take profits.
Platinum/Euro dropped to 1157.36 in July 2010. Bottom pickers saw that the pair respected the 78.6% Fibonacci level so they bought the dip. They sparked a rally to 1,370.39 in January 2011.
Unfortunately for buyers at this level, the lower high showed that the bulls were tapped out. In response, market participants dumped their positions. XPT/EUR posted lower highs and lower lows as selling became the theme. Recently, however, it is showing signs of reversal.
Technical analysis show that XPT/EUR may have bottomed out at 735.54 in April 2018. This comes after the pair generated a bullish divergence on the monthly chart. Also, the pair appears to respect the 23.8% Fibonacci level. Lastly, it looks to have generated a higher low at 743.88 on May 21 on the daily chart.
The strategy is to buy on dips as close to 750 as possible. As long as bulls stay above this level, they have all the momentum they need to climb to our target of 850.
The process may take more than three months.
Monthly Chart of Platinum/Euro
As of this writing, the Platinum/Euro pair is trading at 763.65.
Summary of Strategy
Buy: Buy on dips as close to 750 as possible.
Stop: Close below 728.
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