With the short term correction in the precious metals complex apparently underway, attention is turning towards the platinum group metals to see if they can continue to hold their perches at or near multi-year highs. Platinum futures fell modestly in tandem with Gold futures over the last two trading sessions, but have been stronger on a technical basis and in relative terms of percentage declines.
Thursday's trading brought about a formation which may test the strength of Platinum in the near term, as the price action begins to fall in line with that of the rest of the complex. Platinum fell out of a Descending Triangle chart pattern and triggered a sell signal accordingly.
The Descending Triangle scores high on the Autochartist platform, with an overall Quality reading of 7 bars, and a convincing 10-bar measurement on the strength of the initial breakout. However, with gold having already reached its downside target in a similar breakout yesterday, the momentum will need to continue for the pattern to play out.
Currently the Platinum futures are holding steady near the breakout price level. Renewed selling in Friday's session may confirm the projected price forecast towards the $1,800 per ounce support level.
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