Platinum Asset Management Ltd to Continue Its Upward Trajectory?


  • Platinum Asset Management Ltd. (ASX: PTM) has outperformed the index and generated ~11.89 percent return in the last 3 months.
  • PTM’s prices are moving in a rising channel pattern on the daily chart and getting support from the 100-period Simple Moving Average (SMA).
  • Prices are trading above resistance turned support level on the weekly chart and MACD has generated a fresh negative crossover.

Platinum Asset Management Ltd. (ASX: PTM) rallied 29.47 percent in the past few months, from the low of AUD 3.97 made on 06 January 2021 to a new 52-week high of AUD 5.14 tested on 18 March 2021. Post that the stock entered a correction phase. Despite the downside correction, the stock price is trading in a strong upward trajectory, forming a series of higher tops and higher bottoms, which indicates bulls are still in action.

Platinum Asset Management Ltd. Vs S&P/ASX 200 Index Performance Analysis

PTM’s price has witnessed an upside momentum and generated ~6.99 percent gains in the last 3 months, while the index has given a return of ~3.60 percent during the same time. PTM outperformed the index with a decent margin based on the 11 May 2021 closing.

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

On the daily chart, it can be seen that the prices are trading in a rising channel pattern for the past 9 months and currently, hovering around the lower band of the pattern. Price has broken out of its horizontal trendline (black color horizontal line in the below chart) at AUD 4.51 level and post that made a new all-time high.

PTM on the daily chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

The momentum oscillator RSI (14-period) is trading at ~41 levels, indicating the possibility of a downside movement. The price is trading above its 100-period SMA, acting as a crucial support level near the horizontal trendline.

PTM on the weekly chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

The stock has broken out a downward sloping trendline at AUD 4.54 level on 24 February 2021 and currently sustaining above the trendline breakout.

Moreover, the price is well placed above its 21-period SMA, acting as the important support for the stock. The prices are trading below the Parabolic SAR indicator, acting as a crucial resistance zone. MACD (Moving Average Convergence Divergence) is also showing a negative crossover, indicating the possibility of a downside correction, while the momentum oscillator Stochastic slow is trading around the lower levels and now moving towards an oversold zone.

Based on the above chart analysis and technical outlook, Platinum Asset Management Ltd.’s price seems to be in a primary uptrend. Currently, the prices are holding the key support zone and as per the chart pattern analysis, there might be more action expected in the stock if PTM’s price breaks the crucial support levels or edges higher towards the next resistance level in the coming weeks.

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