Platinum Price Analysis: XPT/USD fades bounce off 12-day-old support, $932 in focus
- Platinum consolidates biggest daily loss in two months, retreats from daily high of late.
- Bearish MACD signals hint at break of immediate support line but “double top” highlights $932 as the key support.
Platinum (XPT/USD) fails to recover from the biggest daily slump in two months despite posting 1.10% daily gains around $957 heading into Friday’s European session.
The precious metal has described a 'double top' bearish chart pattern on the four-hour time frame. An upward sloping trend line from April 27 was recently probed by bears.
Given the bearish MACD signals and the metal’s failure to rise past the 200-SMA, the XPT/USD prices are likely to drop back towards a fortnight-old support line, at $946 by the time of publication.
It should, however, be noted that the quote needs to find the $932 horizontal support level, after breaking $946, to confirm the aforementioned bearish formation, which in turn could recall $860 on the chart.
Alternatively, a clear upside break of the 200-SMA, around $968, will challenge the 'double top' surrounding $1,000.
Also acting as the short-term key upside filter is the late April swing high close to $1,025.
Platinum: Four-hour chart
Trend: Further weakness 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.
