Technical Analysis XPTUSD : 2019-06-04

[IFC Markets]

Precious metals continue to rise in price

The GFMS agency notes that global demand for platinum increased by 2% last year. Will the XPTUSD quotations increase?

In 2018, the demand for platinum in the global glass industry grew by 37%, in the electronics industry - by 17% and in the chemical industry - by 18%. In total, industrial use accounts for 70% of global platinum demand. In particular, it is used in the creation of high-quality optics, special glasses and fiberglass. Currently, all precious metals, including platinum, are becoming more expensive. Investors see them as defensive assets amid intensified global trade wars and plans for the US Federal Reserve to lower the rate.

On the daily timeframe XPTUSD: D1 exceeded the resistance line of the downward trend. Various technical analysis indicators have generated an uptrend signal. Further growth of quotations is possible in case of an increase in demand for precious metals.

• The Parabolic indicator shows an uptrend signal.
• The Bolinger bands widened, indicating high volatility.
• The RSI indicator is above the 50. It has formed a divergence to increase.
• The MACD indicator gives a bullish signal.

The bullish momentum may develop in case if XPTUSD exceeds its last maximum: 821. This level may serve as an entry point. The initial stop loss may be placed below the last two lower fractals and the Parabolic signal: 14,25. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place a stop loss moving it in the direction of the trade. If the price meets the stop level (785) without reaching the order (821), we recommend to cancel the order: the market sustains internal changes that were not taken into account.

Technical Analysis Summary


Position Buy
Buy stop Above 821
Stop loss Below 785