A modest recovery in the precious metals gave platinum futures a boost in Thursday's trading session, positioning the market for an important retest of the $1,700 per ounce level. Platinum turned the corner during the latest metals sell-off and is now trading at its historically normal premium over the price of gold. As both markets work to regain recent losses, platinum is likely to increase its gains. This may add spur unusually strong buying interest in platinum, making the current level important to watch for a possible upside breakout.
Autochartist has identified a simple triangle chart pattern on the 240-minute time frame for platinum. This pattern encompasses the volatility experienced throughout the month's choppy trading when the price pushed briefly above $1,730 per ounce and then sank rapidly.
The triangle's trend line support will allow for a tight stop-loss placement below $1,670 per ounce if an upside breakout occurs. For the market to trigger a buy signal, the current retracement will have to break the $1,702 resistance. Autochartist will continue to track the development of this pattern, wit attendant forecasts generated upon a successful completion and ensuing breakout.