TECHNICAL ANALYSIS: JSE platinum index continues new recovery high trend | Fin24
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TECHNICAL ANALYSIS: JSE platinum index continues new recovery high trend

Sep 26 2019 19:47
Colin Abrams

The JSE platinum index continues to make new recovery highs as platinum stocks continue to be amongst the leaders on the JSE. 

This index has given a new upside breakout.

JSE PLATINUM INDEX – Higher targets still recommendation: HOLD/BUY IF NOT IN

Current Trend: Up on all main timeframes.

Chart Setup: The platinum index has just broken out above line 1 to confirm a short-term inverse head and shoulders continuation pattern (H/Sh), which is bullish. This is following on from a large inverse head and shoulders continuation earlier this year.

• Its Stochastic is entering its overbought zone, but can still continue higher for now given the new breakout. 

(Daily chart)

JSE platinum index

Strategy Details: Buy platinum stocks if not in (or add to holdings).  

Target: 49.20 is the target from the large inverse H/Sh, and slightly above it at 49.50 is the target from the smaller pattern. These are minimum targets. Ultimately expect it to get to a long-term resistance zone at lines 2 and 3 (54.30 to 58.50, respectively).

• Closest support is line 1 at 44.00. 

Stop-loss: For short-term positions only, the stop is a close below 42.00. Take at least half short-term profits at 49.20, then raise stop on the remainder e.g. to a prior two-day low. 

• Its medium-term stop is a close below 38.00. 

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to

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platinum  |  equities  |  jse  |  markets


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