Finweek English Edition - - COMPANIES & MARKETS -

Take short­ing prof­its lower down. The plat­inum price broke to the down­side of a sym­met­ri­cal tri­an­gle (lines 1 and 2) shown in this col­umn a few weeks ago. (At the time the break­out could have been in ei­ther direc­tion.) The min­i­mum down­side tar­get is US$1 635, as mea­sured by the height of the tri­an­gle pro­jected down. That tar­get also co­in­cides with line 3 sup­port. The only po­ten­tial pos­i­tive here is the sto­chas­tic, which is over­sold, which in­di­cates that a rally isn’t too far off – but most likely only af­ter it reaches line 3. If you sold short as per our rec­om­men­da­tion some weeks back, look to cover your shorts – ie, take prof­its (buy them back) – as the price gets to the $1 635 tar­get at line 3. (Note: It’s pos­si­ble the price will drop slightly fur­ther than that – eg, to $1 590 – but at our tar­get it will be a de­cent short-term profit.) Long term, pre­cious met­als are still pos­i­tive – but gold is stronger than plat­inum.

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