The law of demand and supply is once again at play in the platinum market. CFTC Commitment of Traders (COT) data reveal that there are more traders willing to buy than those willing to sell. This imbalance has provided strong support for the market, causing price action to surge past the 1,800 and 1,900 resistance levels.
Key Price Levels
Resistance: 2,000, 2,050, 2,100
Support: 1,950, 1,900, 1,850
Platinum May Witness a Downward Retracement Soon
On the daily chart, the XPT market has recorded notable price movement over the past week, pushing the market to a new high. The most recent price candle is bullish and follows a preceding bearish candle.
Notably, both candles are testing resistance around the 2,000 price level, indicating that the market is encountering strong overhead resistance.
Additionally, the Stochastic Relative Strength Index (SRSI) indicator lines are moving sideways at the upper boundary of the indicator, near the 100 level. This suggests that bullish momentum may be nearing exhaustion.
XPT Downward Retracement May Have Started
While price action remains above the 9-day Exponential Moving Average (EMA), the current session on the 4-hour chart is printing a red candle. This candle resembles a hammer formation while still standing above the 9-day EMA.
Meanwhile, the SRSI indicator lines maintain a mild upward bias but remain below the 50 level. This indicates that although a short-term pullback may occur, the medium-term outlook still supports a possible attempt to break above the 2,000 psychological level.
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