Platinum catches a breath following yesterday’s sell-off. While declines on PLATINUM market yesterday were not as severe as on PALLADIUM market, precious metal dropped over 2%. While yesterday’s risk-off sentiment played a key role in pullback, precious metals were also pressured by strengthening US dollar. Today’s situation is different – risk sentiment improved and USD weakened, allowing PLATINUM and other precious metals to recover slightly.
Taking a look at PLATINUM chart at D1 interval, we can see that yesterday’s decline was halted at the important support in the $900 area, marked with previous price reactions. Today’s rebound is barely noticeable but if it is maintained, markets attention may shift towards the nearest major resistance – $1,025 area. This zone is marked not only with the previous price reactions but also with the 50-session moving average (green line) and the upper limit of the downward channel. $970 swing area may offer some short-term resistance on the way up. On the other hand, if PLATINUM resumes downward move and price breaks below the aforementioned $900 support, the next level to watch for sellers can be found at around $850.