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Gold/Mining/Energy : Mining News of Note

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To: LoneClone who wrote (27054)	10/8/2008 3:27:36 PM
From: LoneClone	Read Replies (1) of 193893

Platinum establishing a base at current lows Joe Meyer Posted: Tue, 07 Oct 2008 miningmx.com [miningmx.com] -- THE platinum price is expected to find support between $900-$950, but if it breaks below that level $850 could be the new floor. However, on the upside, $1,300 is seen as the next resistance level if it breaks out. Introduction We show the weekly closing price of the dollar platinum price with an overbought / oversold indicator. Analysis We constructed a regression line (see line 1) from 1999. This regression line acted as both resistance and support and is a good representation of the long term trend. Over a shorter term we also constructed a horizontal resistance / support line (see line 2) going back to 2006. This line also acted a resistance in the advance and has now again become resistance after it failed as support. After support has failed we see price now hunting for the next support level (line 3) sitting at $920. At the top we can see how the overbought / oversold indicator currently indicate an oversold condition (see point 4). As we said last, it will often happen that an advance will follow such oversold conditions while restoring the oversold condition. Conclusion The platinum dollar price now declined from $2,200 to $920 (58%) in only 18 weeks. Support is between $950 and $900 as indicated by the support line (line 3). This alone is no guarantee that price has reached a low and that a rally will immediately start. We are favouring a low to be established around these levels with an advance to follow towards $1,300 before first resistance is met. This outlook will be helped with a move back above $1,000. Alternatively we will know that we should expect more selling down to $850 if price falls below $900. For more Technical Analysis and recommendations on shares, indices and commodities, visit: fin24.com

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