Platinum Monthly Chart: More Downside To Come?

It’s been a long time since I looked at platinum. When we go back to the 1980 peak we see what followed what looks like 5 waves down. Ok, but it can count as a flat if we see a single zigzag first, then “B” wave rally and a choppy 5 wave decline. (3-3-5)  I saw the pattern during the 90’s as a running zigzag. I’m not inventing a new pattern, but zigzags do have a habit of never being even.

Either way, that bearish phase ended in late 1998 before another rocket move soaring to the $2100 price level. From early 1985 platinum can also work as a big zigzag terminating in late 2007, which is a lot more common in diagonal wave structures.  Then the big crash of 2008 sent platinum south, stopping hard at the $800 price level again in late 2015.

This $800 price level is important because platinum has pivoted around this number 4 times already, since the 1980 peak.  If platinum gets close to the $800 again, then we are faced with a big downside breakout situation. This may not stop until platinum hits the $550-$600 price range.

Since the 1980’s peak platinum resistance produced major reversals at the $550-$600 price range, so this price has significant meaning.

At the late 2007 peak, I show a Cycle degree wave 3 top, which I used to have back at the 1980 platinum peak. I spent years with wave 3 in Cycle degree at the 1980’s peak, but this would move us into SC degree wave counts to soon. I refuse to play the big wave count game anymore, due to the bull markets they have missed.

It takes an incredible amount of time to get a wave count refined to a point we can “see” bull markets coming, but todays wave traders only use the EWP as short term trade setups!

At present we are sitting at a point where a move in either direction can happen, but commercial traders could keep a lid on longer term platinum prices for now. The late 2016 low did not go lower than the 2008 low, so even that would give us a potential running flat, or an unfinished zigzag. I prefer a zigzag Cycle degree correction as “A” waves in zigzags can be extremely straight, while the “C” wave decline can wander around for years.  In a flat correction the opposite can happen as the “A5” wave can be very choppy while the “C5” wave would point straight down. I use the “A5, B3, and C5” expressions for a flat, as they describe where we are in a 3 wave move.

There are many uses of platinum, which I won’t get into right now, but platinum my produce a huge bull market after any 2021 low. Most commodities have a relationship with our sun, as it alternates between repelling and attracting prices. At this time I see the platinum price being attracted down to the start of solar cycle #25. Wouldn’t that be a kick if platinum produced an 8 year bull market driven by solar cycle #25?

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