Platinum Price Forecast: Auctioning inside a bearish flag, bears are hopeful to visit $1,040

Platinum (XPT/USD) is oscillating in a range of $1,070.04-1,089.85 in the Tokyo session. The bullion has witnessed a firmer plunge after violating the trendline placed from the March 7 low of $1105.90, adjoining the March 8 low at $1,119.76. After skidding below the trendline placed, Platinum has found the ground near $1,070.

On an hourly scale, Platinum price is forming an inverted flag pattern, which signals a directionless move after a steep fall and leads to a further downside if consolidation breaks lower decisively.

Generally, a consolidation phase denotes the placement of offers by the market participants who didn’t capitalize upon the initial rally or those investors place bids, which prefer to enter in an auction once the bearish stage sets in.

The 20-period Exponential Moving Average (EMA) at $1,096.55 will act as a major resistance for the asset going forward.

The 50-period and 100-period EMAs have given a fresh bearish crossover at $1,116.73, which adds to the downside filters.

The Relative Strength Index (RSI) (14) has shifted its trading range from 40.00-60.00 to 20.00-40.00, which validates a bearish setup.

For more downside, Platinum needs to skid below Thursday’s low at $1,070.04, which will drag it lower to March 2 low at $1,053.04. Breach of the latter will send the pair towards February 28 low at $1,036.35.

On the flip side, bulls can take the driving seat if the Platinum violates March 4 high at $1,094.13. This will bring some significant bids and the Platinum price can shift higher near March 7 low of $1105.90, followed by a 50-period EMA at $1,116.73.

Platinum hourly chart