Platinum (XPT) Bulls Get Challenged

The platinum market has seen a notable recovery over the past week, with prices climbing upward. However, considering the CFTC Commitments data, it appears that the upward retracement has been challenged by a growing number of investors taking short positions. This, among other factors, has strengthened resistance levels above the current price action, causing the market to reverse direction.

Key Price Levels

Resistance Levels: $975, $1,000, $1,020

Support Levels: $920, $900, $875

Platinum Dips Sharply

Over the past two sessions, the XPT market has experienced a strong downward rebound. This occurred after price action attempted to breach the resistance formed by the 50-day Moving Average (MA) line. Previously, the price had tried to climb above all the MA lines on the chart.

However, this effort failed, and the market retreated after encountering resistance at the 50-day MA. Friday’s session closed below all the MA lines, effectively placing the market back under stronger bearish pressure. Meanwhile, the Stochastic Rate of Change (SROC) continues to decline below the equilibrium level, supporting the view that downward forces may continue to weigh on the market.

XPT Has a Short-Term Bearish Outlook

Even on shorter timeframes, the platinum market maintains a bearish outlook. The latest price candle on the chart is large and red, similar to the last candle on the daily chart, and has driven the market below all the MA lines. This movement aligns with the bearish trend observed in the daily timeframe.

However, the SROC indicator line remains above the 0.00 mark. Its terminal point still appears green and continues to move sideways just above the equilibrium level. That said, bearish traders may want to remain cautious and watch for potential support around the $950 or $940 levels.

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