Chart of the day: Platinum getting cheap
The ratio between gold and platinum, in terms of ounces of one relative to the cost in US dollars of the other, is currently 0.71, the lowest it has been in at least 30 years. Recent price action on the weekly platinum chart, with a doji at the centre of an evening-star chart pattern, suggests an interim high is in place. Peaking just ahead of the top of a large Ichimoku cloud against Fibonacci retracement resistance and close to where we peaked in March adds weight to this view. This suggests we shall retest horizontal support at around US$880 per ounce, a level that has held well so far this year where we have traded basically sideways between here and US$1,040.
Nicole Elliott is a technical analyst