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June 15, 2013

Panning Platinum

The price action in platinum during the 2nd quarter has been anything but bullish. Price has bounced between $1400-1700 half a dozen times over the last 18 months. However, the most recent attempt to rally off the lower bound of this range has been a tepid affair. Furthermore, the price and volume action of the last two weeks bears the markers of an imminent break lower.

You'll notice the volume uptick two weeks ago. While that week finished with a gain, the more significant characteristic of the action is the failed attempt to push through a minor pivot zone. This failure, in combination with the volume uptick, suggests a run on stops ahead of a take down. And then last week saw a take down. The chart now appears poised for a strong break through the lower end of the 18-month trading range.

 

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