Platinum futures benefited in last week's recovery of the precious metals complex and are once again closing in on the $1,900 per ounce level. The steeply rising trend of the retracement underscores the strength of the market, with a possible breakout of the Rising Channel chart pattern in store for the near term.

/

Friday's price action moved the platinum price to the breakout level needed to exit the channel and accelerate the angle of the ascent from the current trend. A move higher in prices from this level without a pullback towards channel support will confirm the breakout and generate a forecast target, which is likely to move in tandem with gold towards the $2,000 per ounce level. A failure to overtake Friday's high would suggest a short term pullback however, and a possible retest of the trend line at $1,850 per ounce.

The current price of platinum is nearly equal to the price of gold. This has historically been a strong value area for platinum, as the price is almost always at a premium to gold, suggesting that a continuation of the precious metals rally will eventually send platinum much higher on a relative basis.

For further information on this and other Autochartist products, visit our website at www.autochartist.com