Platinum is one of our favorite metals for 2021, as explained in great detail in which precious metal to buy in 2021 and in our platinum price forecast 2021. However, early March we got a good 2 day selloff in platinum which was triggered by gold’s breakdown. Platinum will need some time to consolidate before it can get wildly bullish again.
We look at the daily platinum price chart in this article.
The one thing that stands out, other than the nice uptrend, is the break to a ‘lower’ channel. This break is indicated with the red circle on below chart. The level where it all started is 1217 USD. That’s the key level to watch for a breakout in 2021, and we need 3 full daily candles above 1217 USD before getting too excited about platinum.
In general markets that move to a ‘lower’ (parallel) channel need time to digest this. It is not reasonable to expect such a market to get bullish very soon. The most likely path is a sideways price action until the support of that new ‘lower’ channel.
This general rule of thumb applies to platinum as well, and we believe we see that this ongoing consolidation will bring platinum to the support area of its new channel as per the platinum chart below. We need some 4 more weeks of a consolidation pattern is our best guess before any bullish move can start.
In the meantime 1122 USD is a crucial support level. Platinum should not violate this level.
We still expect a bull run in platinum, not the earliest in May of this year (if not later).
