Platinum prices stalled @ 1046.70 on January 16th, which was inside the middle of my proprietary Fib resistance zone. Is this the start of a bigger correction or just a temporary pullback before making new highs?
- Let's digest the chart for clues:
- Jan 16th high made on selling (black candle), which is bearish.
- Jan 16th high made near the monthly R2 pivot @ 1041.00, which can be an overbought level.
- Jan 16th high corresponds with 3 major swing highs from 2017 and 2018. All of them saw big sell-offs afterwards.
- Price action has since fallen more than the previous 3 retracements off the Nov 12 swing low. This breaks the symmetry of this up move signaling a bigger correction could be coming.
- Large traders have record net long positions as of Jan 21st, which is bearish.
- The MACD formed a bearish crossover yesterday.
The chart is starting to support a bigger correction.