Platinum (XPT) Eyes the Next Psychological Resistance

Things are brewing well in the Platinum market even as we head into the new year. Several factors are aligning to support price increases at a time when metal production is set to see a decline. Likewise, the automotive sector is set to increase the use of the metal in a bid to lower CO2 emissions. On Friday, the price of the metal rose to a seven-week high, and more may still be seen as the new week unfolds.

Key Price Levels:

Resistance Levels: $1,000, $1,025, $1,050

Support Levels: $950, $925, $900

XPTUSD Bulls Are Furious

The Platinum market has seen considerable and extended periods of buying. This has propelled price action in the market through some key marks. Friday’s trading session ended above the $975 threshold. As a result, the metal now trades above all the lines of the applied Moving Average (MA) indicator.

Also, Stochastic Relative Strength Index (RSI) lines are now hovering at the 100 level of the indicator. Meanwhile, the 20- and 50-day MA lines seem to be approaching a crossover below price activity. Technically, this suggests that the market has a short-term bullish outlook.

Platinum Bulls Are Retaining Key Positions – 4-Hour Chart

Even in the XPTUSD 4-hour market, it could be observed that price activity is still in position for a continued upside retracement. The last price candle on the chart has appeared green and lacks both upper and lower shadows. Likewise, the 20- and 200-day MA lines are now at a crossover below price activity.

However, on the contrary, the Stochastic RSI lines can be seen taking a bearish trajectory following a crossover above the 80 mark of the indicator. This would have signaled a trend reversal, but the position of the fact that the ongoing session is occurring above all the MA lines and a crossover negates that opinion. Therefore, traders can stay their medium-term targets at the $1,000 threshold level, seeing that an uptrend is on.

Start using a world-class auto trading solution.