Platinum Price Forecast: Auctioning inside a bearish flag, bears are hopeful to visit $1,040
|- Platinum is auctioning inside an inverted flag formation.
- Bears are firmer on a bearish crossover of the 50-period and 100-period EMAs.
- Oscillation of the RSI (14) in a 20.00-40.00 range validates a bearish setup.
Platinum (XPT/USD) is oscillating in a range of $1,070.04-1,089.85 in the Tokyo session. The bullion has witnessed a firmer plunge after violating the trendline placed from the March 7 low of $1105.90, adjoining the March 8 low at $1,119.76. After skidding below the trendline placed, Platinum has found the ground near $1,070.
On an hourly scale, Platinum price is forming an inverted flag pattern, which signals a directionless move after a steep fall and leads to a further downside if consolidation breaks lower decisively.
Generally, a consolidation phase denotes the placement of offers by the market participants who didn’t capitalize upon the initial rally or those investors place bids, which prefer to enter in an auction once the bearish stage sets in.
The 20-period Exponential Moving Average (EMA) at $1,096.55 will act as a major resistance for the asset going forward.
The 50-period and 100-period EMAs have given a fresh bearish crossover at $1,116.73, which adds to the downside filters.
The Relative Strength Index (RSI) (14) has shifted its trading range from 40.00-60.00 to 20.00-40.00, which validates a bearish setup.
For more downside, Platinum needs to skid below Thursday’s low at $1,070.04, which will drag it lower to March 2 low at $1,053.04. Breach of the latter will send the pair towards February 28 low at $1,036.35.
On the flip side, bulls can take the driving seat if the Platinum violates March 4 high at $1,094.13. This will bring some significant bids and the Platinum price can shift higher near March 7 low of $1105.90, followed by a 50-period EMA at $1,116.73.
Platinum hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.