Platinum (PL) continues to trade sideways and the metal is in the process of forming an important low before the next major bullish cycle starts. The Federal Reserve has aggressively hiked rates multiple times, creating a sideways to lower movement in the commodity sectors. There’s however no doubt that the longer term outlook of commodities is bullish. At this stage, there’s enough number of swing to call the daily and monthly correction completed. However, we still need more data and evidence to call the correction completed. In the meantime, we still give a possibility for the metal to extend lower until the market says otherwise. Below is the update of the Elliott Wave chart in Platinum.
Platinum Monthly Elliott Wave Chart
Monthly Elliott Wave Chart of Platinum (PL) above shows that the rally from January 1992 low ended with wave ((I)) at 2308.8 as an impulse Elliott Wave structure. Pullback in wave ((II)) ended at 562 as a zigzag structure.
The metal has resumed higher in wave ((III)). Up from wave ((II)), wave (I) ended at 1348.2, and wave (II) pullback is in progress to correct the rally from wave ((II)) before the metal resumes higher again. It has enough number of swing to end wave (II), but we need more data and confirmation to call the correction completed. A close above the descending trend line from wave ((I)) should the first sign that wave (II) has ended and the metal ready to extend higher. From the structure, it looks like 2023 would be a bullish market for the metal.
Platinum Daily Elliott Wave Chart
Daily Elliott Wave Chart for Platinum above shows that the metal is correcting cycle from 3.17.2020 low in wave (II). Internal subdivision of wave (II) is unfolding as a zigzag Elliott wave structure. Down from wave (I), wave a ended at 886, and rally in wave b ended at 1197.
Wave c is in progress as 5 waves impulse structure. Down from wave b, wave ((1)) ended at 796.8. Wave ((2)) is in progress to correct cycle from 3.9.2022 high before the metal turns lower again in wave ((3)) of c. If the metal manages to close above the descending trend line from wave (I), we can consider wave (II) completed at 796.8.