Platinum Price Tests $1,700 Support as Selling Pressure Deepens

The latest charts have XPT around $1,750 when it was a little lower at one point during the day, by approximately 4.1%, and market commentary indicated that prices briefly dipped as low as $1,705.

The pullback is continuing an ongoing correction from above $2,000. Platinum is testing a range where previous buyers have targeted, but the technicals are not yet in play for a sustained recovery.

Platinum Tests the $1,700 Level

Trader Ian Cooper noted that $1,700 was an important level that platinum was just about to reach. His chart also revealed a wider support range from $1,500 to $1,700, a price at which there was previous demand.

The area is important due to a few levels of support that platinum has hit in its recent downturn. In the current price action, $1700 is the first lower level of resistance that the market has to break before it moves into the broader range.

The reversal is not confirmed with the analyst chart, though Cooper pointed out a number of reactions in the zone. Price has not been able to extend this month’s selloff to reach recent highs, and the market has maintained a weaker tone following months of selling.

A break below $1,700 would draw more interest to the bottom of the range. Alternatively, if the consolidation period continues, it could yield a “relief bounce” if the buyers come back with increased volume.

Fibonacci Support Comes Into Focus

Ole Hansen’s chart included a longer-term perspective of the decline. Platinum has now closed out much of the rally that took it above $2,000 and is now testing an area near the 61.8% Fibonacci Retracement from the $1,980.00 highs.

This is a key turning point in major corrections. The X chart also highlights a more significant correction area near $1,500, one that lies within the support area indicated by Cooper.

Significantly, the downturn is coming at a time of wider precious metal declines. Thinner liquidity in platinum can make the price swings larger when selling pressure builds, said Hansen.

Platinum is still trading above its base in the long-term chart. The current drop, however, has reversed a lot of the gains and pushed the market back into the prior range of levels prior to the beginning of what was the most robust rally in the market.

Momentum Remains Bearish

XPT was trading near the level of $1,750 with a $75 loss on the day, according to TradingView data. The 30-minute chart showed that the price has failed to maintain its momentum in the upside direction and that the price is extending its point of failure, which has resulted in a steady trend of momentum failure.

The MACD line moved close to -56.43, which was below the signal line at -40.95. The bearish momentum was also continuing as the histogram remained at negative figures of around -15.48.

On the charts, Chaikin Money Flow has dropped below -0.02. That read is a sign of net selling, but not a sign of capital flight, so buyers still haven’t taken control.

There is immediate resistance at $1,800 and a higher barrier at $1,900 in platinum. The next support area is at the $1,700 price level; if a break below $1,700 does occur, it may lead to the $1,600 price support level and the wider $1,500 support area.