Platinum looking for 5 waves rally

Post-pandemic economic rebound, government infrastructure spending, and green energy plan have driven the rally in industrial and precious metals in 2021. As governments globally are looking to curb climate change, demand for platinum may surge. The metal is used in catalysts in diesel vehicle engines to reduce carbon emissions.

World Platinum Investment Council forecasts demand for the precious metal will increase around 254,000 ounces or 3% in 2021. This will result in deficit around 60,000 ounces. The market is already in deficit for two straight year previously. Spot price for platinum rose to above $1300 in February in response to supply deficit. Below we will look at the technical outlook for the precious metal.

Platinum (PA_F) daily Elliott Wave chart

Rally from March 16, 2020 low is unfolding as a 5 waves impulse Elliott Wave structure. Up from March 16 low, wave ((1)) ended at 1035.5 and pullback in wave ((2)) ended at 821.3. The metal then extends higher in wave ((3)) towards 1348.2, and pullback in wave ((4)) ended at 1111. The metal still needs to break above wave ((3)) to avoid a double correction in wave ((4)). Near term, dips should find support in 3, 7, or 11 swing and while pullback stays above 1111, expect Platinum to extend higher in wave ((5)). Alternatively, in a more bullish count, the rally from 3.16.2020 can be a nest ((1))-((2))-(1)-(2). In a nest, then we could potentially extends higher impulsively in wave (3) of ((3)).