Chart of the Day: Platinum's problems
Rather like gold, October's rally is still very much a corrective bounce within a down trend. Moving averages and the Ichimoku cloud are still pointing south and a secular trend line from 1999 is now capping rather than providing support, adding weight to this year's trend line resistance. Note that these lie just under the 38 per cent Fibonacci retracement resistance (taken from January's high). Over the next week or two we expect a drift back down to the US$940 per ounce level, with a break below here (possibly in thin year-end market conditions) setting off a re-test of this year's low (US$888) and then a slump to our next target at US$850.
Nicole Elliott is a technical analyst