Platinum futures followed the rest of the precious metals complex sharply lower in Monday's session on renewed signs of global economic weakness. The slide in the metals was telegraphed early on when major support levels in gold, silver, platinum and palladium all triggered stop-loss orders with no buying interest materializing at the lower prices. Autochartist identified multiple key level breakdowns on most time frames.
Platinum dropped to new lows near the $1,480 per ounce level to settle on a major technical support provided by the bottom of a Falling Wedge chart pattern. This pattern, illustrated here on the Autochartist 240-minute time frame, has seen several retests of support through the long term decline from $1,700 per ounce. As the price falls further from the resistance at the top of the wedge, the potential for a downside breakout from this formation increases.
Renewed weakness in the precious metals as the week progresses would likely trigger a sell signal for platinum as this pattern fails. A drop below Monday's low, especially if it occurs on high momentum, will execute a downside forecast as this downtrend accelerates. Watch for this pattern to develop on the Autochartist Emerging Patterns platform for price guidance as this move unfolds.
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