Platinum technical analysis is indicating a a base might be forming

New York (Oct 7)  Looking at the platinum price chart it is clear to see that the price has been falling heavily in recent months. Since the high on the chart of $1337.30/oz the price has fallen to nearly 32% to hit a low of $909.50/oz. There has been a small recovery and the price looks like it's ready to test the psychological $1000/oz level.

One of the main features on the chart below is the descending wedge pattern. The price is now testing the top trendline of the structure and a close above could be bullish for the precious metal. Above that, there is a resistance level marked in green at $1026/oz which would mean a higher low higher high would be created.

On the downside, the main area to watch is the black support level at $909/oz as if it breaks it could mean the downtrend is about to continue. That level is also a low volume node on the volume profile indicator which illustrates its importance.

All in all, the price is still in a downtrend but is showing some small signs of a reversal. The price could now start to push higher now the chart pattern is being tested. A break of the $1000/oz level would be a good coup for the bulls.

Reuters