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Platinum on crossroads – heading above or below $1,000?

Platinum failed to break above $1,050 several times, indicating bulls are leaving the commodity for other assets.

All major metals surged after the Fed lifted interest rates, but erased gains in the following hours. Now platinum flashes a red signal with danger ahead. 

Platinum top-down technical analysis

After platinum reached a crucial resistance a little above $1,000, it is showing signs of weakness. It failed to move above the trend line and OsMA on the weekly timeframe shows the commodity is currently overbought. 

Related article: Silver ahead extreme macro data week – where is it headed?

If platinum manages to break the trend line that held the uptrend since September, it may dive back to the support at $836, or even lower. It will be important to watch what happens in the next few days, so let’s switch to the daily timeframe. 

platinum

Platinum weekly chart, source: tradingview.com, Author’s analysis

The daily timeframe shows mixed signals on the OsMA indicator, but the chart is sending a clear message. There is a possible triple top formation. If this trading pattern helps with a break of the trend line downward, a sell signal is confirmed.

platinum

Platinum daily chart, author’s analysis, source: tradingview.com

Platinum has also started creating lower highs (LH) recently, which is another indication of bulls leaving their long positions. The commodity could be headed well below $1,000, possibly leading to a red start in the next year. 

Also read: Tesla falls below another key technical level

When we look at the platinum closer, it’s still not sure which direction it will go. The 4-hour timeframe shows the commodity is currently between two important trend lines, and the breakout of one of them will outline the next direction. 

platinum

Platinum 4H chart, author’s analysis, source: tradingview.com

So, the breakout below the red line would essentially mean a confirmation for bears, but a breakout above the green line would indicate this technical signal is wrong and platinum may be ready to extend its gains. 

Final thoughts

Make sure to wait for the confirmation signal of these two levels as several false breakouts can occur between them. As always, be patient, disciplined, and don’t forget to manage your risk in trading. Protect your capital at all costs.

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...

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