No doubt recent gold bullishness should prod platinum a bit higher with bullion demand. Even though platinum is more rare than gold, I think the industrial component of platinum has caused many bullion investors to shy away.
The technical picture shows the complications, as platinum is still the one precious metal still under it's 2008 high. As silver, gold and palladium have enjoyed terrific impulses to the upside, platinum has only seen incremental increases.
The long term EW picture shows a potential double zig-zag up from the late 2008 bottom. With a triangle ending and a 5 wave move higher in the next few months, a potential LT top could be established soon. Critical support for this EW interpretation is 1676, any move below this level in the ST kills this interpretation.
Here is a closer look:
The recent week's action has certainly been impulsive, breaching a multi-month trend-line (orange). A back test of that trend-line may occur soon, giving a potential opportunity too enter a long position. Such a back test would need to be 3 choppy waves down. Any sharp reversal that falls back below 1676 may suggest a MT bearish rejection from a triple top zone between 1865 and 1900, and {C} wave down might start earlier than expected.
However, I personally favor further advance for all the metals, including platinum into the first quarter of 2012.
...
