Platinum Price Analysis: XPT/USD bulls attack seven-month-old old hurdle above $1,150
- Platinum prices stay firmer around the highest levels since June 2021.
- 78.6% Fibonacci retracement of May-December 2021 declines challenge bulls amid overbought RSI.
- Weekly support line tests short-term sellers, 200-DMA appears strong support.
Multiple hurdle test platinum (XPT/USD) bulls below $1,200 during early Wednesday in Europe. That said, the quote holds onto the previous day’s upside momentum around $1,170 by the press time.
The precious metal refreshed multi-year high the previous day before reversing from $1,182, near to the 78.6% Fibonacci retracement (Fibo.) of 2021 downside. Also challenging XPT/USD buyers is an upward sloping resistance line from August 2021.
Given the overbought RSI conditions, as well as the keys resistances around $1,180-85 mentioned above, platinum prices are likely to witness a pullback towards the 61.8% Fibo. level around $1,130.
Following that, the weekly support line close to $1,125 will act as an additional downside filter for the commodity before directing to an upward sloping trend line from December 2021 and the 200-DMA, respectively around $1,050 and $1,010.
Meanwhile, XPT/USD upside needs validation from $1,185 to aim for the $1,200 threshold.
In a case where the platinum bulls keep reins past $1,200, tops marked during May and February of 2021, near $1,280 and $1,340 in that order, will be crucial to watch.
Platinum: Daily chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
