Could platinum break out of its current price consolidation range

New York (Apr 30)  Platinum prices have been moving higher but maybe not as much as its counterpart palladium. Obviously, they have different uses and this is apparent in the EV sector when palladium in particular is having a great run. 

Nevertheless, it is good to have a look at some of the technical factors affecting the move higher in platinum. Below is the weekly chart and on this timeframe, it is apparent why the precious metal met some resistance at the $1337.3/oz area. This was a massive support zone back in 2013 where the price had three major bounces off the zone to stay within its range at the time.  Then there was a subsequent break and the price trended lower to reach the low of $565.43/oz in March 20202.

Moving on, there has been a massive bull run and the price currently trades at $1218.92/oz. Platinum is now stuck in a trading range between the red and green shaded zones. The red area could be considered as a major support as it has been used to very good effect on two occasions but below that the consolidation high at $1041.45/oz is the much firmer zone (marked in the blue shaded area). 

Looking forward, the market is still very much in a bullish trend. The key level the bulls need to watch is the next resistance at the green shaded area. They have been stopped once there already and beyond that, the purple area at around $1500/oz could be the long-term target. The red upward sloping trendline could be a support area especially as it converges to the red zone at about $1175/oz. One thing is for sure the precious metals that do have some industrial use area performing well at the moment.

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