Platinum continues building a solid base above $1,800 per ounce, with Monday's upswing confirming near term support provided by a Pennant chart pattern. The Pennant, shown here on the 60-minute time interval, has established a rising price trend in the near term. The successful retest of the sideways range that developed near $1,825 during last week's trading portends a possible rally back to the upper end of the formation.
This Pennant shows very good internal technical strength, with an overall Quality reading of 9 bars, and a full 10-bar reading for both Initial Trend and Clarity. The support and resistance lines are narrowing considerably as the pattern completes, indicating a directional breakout will likely come soon.
The anticipated rally to the upper end of the range near $1,840 per ounce would build a strong possibility of an upside breakout, followed by a move to new highs for the nearby Platinum futures contract. Any renewed weakness in the market may bring a downside failure, and a move below $1,820 would negate the current bullish outlook for the market.
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