Platinum Tries To Recover After Reaching Its 2 And A Half Year Low
Nomsa Ndlovu | Jul 09, 2018 05:04AM ET
Platinum
The price of platinum has been decreasing in falling peaks and troughs ever since the beginning of the year. Looking at the weekly chart at B, price has been consolidating between the resistance level 1017.3 and the support level 873.7. It was only two weeks back when price decided to break off the consolidation phase. After the consolidation phase price fell towards the support level at 811.2 and reached its 2 and a half years low (seen on weekly chart). Last week price gained some strength and had a pull back.
Currently it is sitting at 842.8.
Looking at the fact that price is in a downtrend, we might see it falling towards the support level at 811.2 again. For any trade ideas, one should wait for price action signal before thinking of having a sell pending order.
Gold
The price of gold has been decreasing strongly without any serious pullbacks since mid-June. Last week price even reached its six-month low at 1242.73. Just after reaching its six-month low, price gained some strength and had a retracement. During the week price was also affected by the trade war between U.S and China. Currently price is sitting at 1255.99 and could fall towards the support level at 1242.73 since it is still in a downtrend. If price falls and goes past the support level 1242.73 then it will continue decreasing towards the support level at 1212.02.
For any trade ideas, it is best to wait for any price action signal before looking to place any sell pending orders.
Crude Oil
Get The News You Want
In the past week, the price of oil has been experiencing a pullback after having created a higher high. Weeks before that, the price of oil decreased in a series of falling peaks and troughs. The downward trend was changed when price went passed the resistance level at 77.82, creating a new higher high. After having created the higher high level on the 29/06, price retraced below the resistance level at 77.82 and it is currently sitting at 77.05.
The pullback in price was also caused by the trade war that has been going on between the two large economies (U.S and China). This pullback might continue happening and price has a chance of falling towards the support level at 75.05.
Since price has created a new higher high, this could be seen as the first sign that trend was changing. So for trade ideas it is better to wait for price to reach the support level at 75.05 and to have a price action signal before any pending orders can be placed.
Cocoa
Two weeks back the price of cocoa created a lower high and started falling until it reached 2351. Last week price gained some strength and had a retracement, creating a new higher low. Price consolidated between the resistance level 2550 and support level 2351 the whole of last week. There was no clear direction of where price was actually going. At the moment it is sitting at 2472. There are possibilities that price might fall to test the support level at 2351, if not then it will create a new higher low and rise towards the resistance level at 2550.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.