Platinum (Update)

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.

Conclusion:
The chart is starting to support a bigger correction.

 

Chart_20-01-28_08-51-18

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