Based on a long-term analysis of historical data, the average positive and negative daily returns are approximately 1.03% and -1.07% , respectively. The estimated daily return in both directions based on their probability of occurrence is 0.53% and -0.50% . Friday´s return was -3.15% , which is above the second standard deviation. Our scoring is currently slightly positive (1 ) for the month-on-month change and 2 for price indexation. Both scorings range from -3 up to 3 . Indexation is currently in a growing phase of the cycle. The development of the estimated cycles based on our analytical system is shown in the following chart.
Different moving averages (MAs) help us better identify trends across multiple time frames. We use 3 basic MAs to find out which sentiment dominates each horizon. The purple line represents the monthly , the green line the 6 months and the yellow line the annual moving average. In the case of 6 months MA, XPT/USD is still in bearish sentiment. Annual and monthly MAs are in bullish sentiment and could be important supports for the market price.
Since our last analysis, we have witnessed more upward trends, even though the price is lower. They did not exceed 4 days. The total maximum in the measured period (last 3 years) is 6 days. Downward trends did not exceed more than 3 days in the same period. The total maximum for the last 3 years is 7 days. We could use the average long-term ATR (Average True Range) obtained from daily data (3.44% ) to estimate Stop Loss orders for our positions. The current value is 3.07% , which is very close to the average. Approximately 90% confidence interval (return between -2.40% and 2.40% ) is shown in the histogram below by a red rectangle.
We could use the last decile of low to high returns (3.60% ) to estimate Profit Targets, as shown in the chart below.
Since the beginning of this year, the basic technical analysis has supported bearish sentiment as the price of the commodity is creating lower lows and lower highs. The long-term outlook is more positive. Yesterday, XPT/USD fell from an important area, where are the Fibonacci retracement level of 23.60% , the psychological level of 1 150.00 and the short-term moving average. This could be a strong resistance to price in the near future. In the event of a further decline, there is the demand zone (green rectangle) with the psychological level of 1 000.00 and the Fibonacci retracement level of 38.20% . The divergence between price development and the RSI, together with the long-term moving average, supports the current short-term bullish sentiment.