Platinum on the Edge: Key Support Faces Bearish Pressure

Platinum is currently testing a crucial support level, the long-term uptrend line marked in green, which has connected higher lows since mid-November. The descent to this key support began after a false breakout above the orange horizontal resistance at the beginning of July. This failed breakout was followed by a shooting star candle on July 17, marking the start of a significant downward trend.

Now, as platinum trades on this vital support, the sentiment appears bearish due to the recent downturn in precious metals. Despite the typical buying opportunity that such support levels present, the lack of demand hints at a potential bearish breakout. If the price closes below this green support line, it will signal a strong sell. Conversely, a reversal pattern at this level could offer a buying opportunity with a target at the orange horizontal resistance. However, given the current market conditions, a bearish breakout seems more likely.

Overall, the next moves for platinum will be pivotal. Traders should closely watch whether the price can sustain above the green support or if it will break below, signaling a further decline. The recent price action and market sentiment suggest that a bearish breakout is on the horizon, but as always, the market can surprise.

Source: https://www.axiory.com/analytics/technical-analysis/platinum-on-the-edge-key-support-faces-bearish-pre