Platinum has continued its sell-off since my January 28th post. The question now becomes how much lower can it go?
Watch the 945.60 to 921.70 range. This area is a subsection of my proprietary Fib support zone. I have narrowed this larger zone based on the 4 measured moves made on its 240M chart. The primary and secondary ABCD patterns both have deep retracements, which signals a weak down trend. The decreasing nature of the time ranges (16 to 23 to 9 to 7 to 7) signals momentum is starting to wane. We typically see moves bottom out as these time ranges shrink. The deepness of the two primary ABCD patterns also indicates we could see a healthy pop once a low is made.
I anticipate a move lower into this support zone followed by some sideways action. I would then expect a rally to test the recent highs. Whether or not this re-test will fail or not is anyone's guess.