The platinum markets gapped lower at the open on Tuesday, and then turned back around to fill that very same gap. The fact that we fell down from that area and formed a shooting star suggests that the market is probably going to weaken from here as well, but ultimately I feel that the trend line on the chart suggests that the $1450 level is about as low as the platinum market is ready to go. With that, I am looking for a supportive candle in that region.
As you can see, this is a market that has been gradually going higher since April. However, there has been significant pullbacks from time to time, just as we have seen over the last month. We are reaching the bottom of the channel, which suggests to me that the market is ready to turn back around to the upside. Obviously, the $1500 level above is a large, round number, so having said that I feel that there will be a significant amount of resistance in that general vicinity.
Platinum is like silver on steroids.
A lot of what drives the platinum market is very similar to the silver market. They both also are safer to play in the CFD markets because of the volatility and large amounts of margin needed to play the futures markets. Quite often, it’s easier just to play binary options or normal options.
Keep in mind that platinum is a fairly significant industrial metal, with a lot of demand tied to the automotive industry. With that, it acts as an industrial metal. However, it is also precious metal and therefore can be influenced by the US dollar as well. After all, the contract is priced in that currency, so it naturally has a bit of a counterbalance to this market. I believe that the uptrend line is significant enough that we will continue to go higher though, and I also believe that the $1450 level should coincide with the test of this uptrend line. On a supportive candle for a slight bounce, I am more than willing to get involved to the buy side.
