On Tuesday, commodities rallied on the weaker dollar and lower US10y yeilds. Among we focus more on Platinum as the underperforming price space. During the commodities rout, the Platinum price at one point fell 755$ in mid-August from the January 2018 high at 1028$, nearly a 16%.
Since then, the price has been consolidating in ranges, But the price has reaffirmed support since last week. It has been well supported at 775$ in recent months and traced out a triple bottom (monthly basis) and double bottom on a daily basis.
As shown in the below chart, since post-Christmas the price has been framed between 775-830$, now focus on the higher end of the frame. The trend is supportive, but the markets need to take out the 830$ on a daily closing basis to confirm the trend once again.
Under these conditions, keep an eye on the resistance 830$, as a breakout above this would strengthen the upward momentum further with a new target the strength around 844$, 875$ and 900$ levels before flying towards 1000$ mark by the end of 2019. On top of the resistance, we request readers to focus on the daily RSI, as the indicator too need a breakout.
Supports are located at 799$ and 775$.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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