Platinum Price Analysis: XPT/USD struggles inside bear flag, $870 is the key
- Platinum remains pressured inside a bearish chart pattern.
- Bullish MACD signals, 21-DMA challenges further downside moves.
- Monthly resistance line guards recovery moves ahead of 50-DMA.
Platinum price (XPT/USD) struggles for clear directions, pressured of late around $876.00 amid the initial European session on Wednesday.
In doing so, the precious metal stays inside a bearish flag pattern while also keeping the previous day’s downside bias.
However, a convergence of the 21-DMA joins the stated flag’s lower line to highlight the $870.00 as the key level for XPT/USD bears entry.
It should be noted that the bullish MACD signals are against the pair sellers, but the recovery needs validation from the monthly resistance line, near $890.00 by the press time.
Even if the platinum price rallied beyond $890.00, the flag’s upper line and the 50-DMA, respectively around $916.00 and $918.00 in that order, could challenge the bulls. Also acting as an upside hurdle is the $900 threshold.
In a case where Platinum prices rally beyond $918.00, the late June high of $9400.00 should lure the buyers.
Overall, XPT/USD remains on the bear’s radar but a strong downside trigger is needed to conquer the $870.00 support confluence.
Platinum: Daily 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.
