Platinum futures followed the rest of the precious metals complex lower in Tuesday's trading session, slightly underperforming gold on a dollar-for-dollar basis. The historically rare price premium of gold to platinum has been narrowing in both rising and falling sessions for the last several weeks, with the gap between the two finishing the session at around $60 per ounce. This adds significance to Autochartist's key level identified here for platinum, as traders moving into platinum/gold spreads will be looking for a good support level to buy the platinum leg of the spread. Autochartist has identified the key level of $1,600 per ounce as a significant lateral support level for a possible reversal in the current decline. This coincides nicely with the Autochartist price target for gold, which shows a breakout and $1,636 per ounce forecast on the 240-minute candlestick chart. These may both prove solid areas of support to complete the sell-off and turn higher.
Platinum closed within $12 of the $1,600 per ounce level, implying a retest is likely to come in Wednesday's session, A sustained slide below the level would be a bearish development, however a bounce may allow for traders to establish long positions with a stop-loss order below the key level.
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