FxWirePro: XPT/USD pops-up with bearish formations but no supplementary substantiation, likely to slide but to maintain range

After three months of bear streaks, the bulls in platinum prices have at last found a support at 926.40 levels.

Thereby, we reckon that the major downtrend appears to be in the consolidation phase.

For now, shooting star pattern has occurred at 986.50 levels sensing stiff resistance at 1001.71 levels.

Advice is that not to get bear trapped, shooting star needs confirmation.

RSI: Healthy bullish convergence signal strength in rallies on daily terms but decisive on monthly terms as it evidences divergence to the price dips that signal strength in the reversal in last three months price declines.

Stochastic: This leading oscillator approaches the overbought territory but no traces of %D crossover.

MACD: The upswings likely to extend in short-run, in the long run the price behavior looks to be decisive but bullish bias.

Overall, it appears that the prices to have been corrected more than needed. The price correction made sense if strikes are unlikely but the extent of the pullback looks overdone. Hence, we could foresee platinum price drift in the range between 1029 on the north and 926.40 on the south side in next 1 months’ time.

Platinum (XPT) climbed to $992 while palladium (XPD) rose 0.1 pct to $520.47.

Fundamentally, with the wage agreements apparently in place in South Africa’s platinum industry, the latest threat of strikes has passed. Last week we wondered if this was going to be a ‘sell the rumor, buy the fact’ situation.