Platinum Price Analysis: XPT/USD fades bounce off yearly low, $898 in focus
- Platinum prices fail to extend corrective pullback from six-month low.
- Previous support line from December 2021, three-week-old resistance line limit recovery moves.
- November 2020 lows could lure bears below $898.00, RSI may test further downside.
Platinum Price (XPT/USD) retreats to $910.00, after bouncing off the yearly low the previous day. In doing so, the precious metal portrays failure to cross the support-turned-resistance line from late 2021.
Adding strength to the bearish bias is the downbeat RSI (14) line, not oversold, as well as a downward sloping trend line from June 06.
That said, the metal prices are likely to drop towards the latest trough surrounding $898.00. However, the RSI may challenge any further downside of the XPT/USD prices.
Should the quote remains bearish past $898.00, the odds of witnessing a south-run towards the latest 2020 lows surrounding $840.00 can’t be ruled out.
On the contrary, the previous support line and a three-week-long descending trend line, respectively around $914.00 and $922.00, guard the short-term recovery of the platinum prices.
In a case where the XPT/USD manage to cross the $922.00 hurdle, the 200-SMA level near $992 may probe the bulls before directing them to the monthly high surrounding $1,036.
To sum up, the platinum price stays depressed but further downside needs validation from the yearly low of $898.00.
Platinum: Daily chart
Trend: Limited downside 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.
