Platinum futures began the week moving quietly higher with the price of gold. The mild strength is carrying the market towards key resistance on the Autochartist 240-minute chart analysis, which reveals a large triangle chart pattern. The price of platinum is quickly approaching the apex of the triangle which suggests a breakout may occur this week.
The triangle chart pattern is somewhat broader than the typical triangle, but the descending trend line resistance has successfully capped the latest rally attempts with a high degree of reliability. This makes a potential upswing above this level a key level to watch as the triangle comes to a completion. A move above $1,692 per ounce is needed to trigger an upside breakout from the triangle. This would initiate a buy signal with stop-loss orders placed below the rising support trend line near $1,670 per ounce. While the overall rising trend as viewed from the bottom of the triangle is encouraging for such a bullish move to materialize, traders should be wary of a break of trend line support in case a reversal to the downside executes instead.
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