Platinum’s Pennant Formation Signals Imminent Move

By Tomasz Wisniewski|

Published: June 03 2024, 07:12 GMT+0

Platinum’s Pennant Formation Signals Imminent Move

In today’s technical piece, I want to highlight the intriguing setup currently forming on platinum. May was a mixed month for this metal, with a strong first half followed by a bearish correction in the latter half. The price is now shaping a pennant, or symmetric triangle, marked by green lines, indicating a consolidation phase.

A breakout from this pattern will determine the next direction. A breakout to the upside will signal a buy opportunity. However, if the price breaks below the lower green line, it won’t immediately signal a sell due to the presence of key horizontal support marked in yellow. Only a daily close below this yellow support would confirm a bearish signal.

This setup shows platinum facing one resistance and two support levels. Given the current market conditions, a bullish breakout seems slightly more probable, but traders should watch closely for any decisive movements.