- I don’t normally talk about platinum too much here at Daily Forex, but this is a chart worth watching because it does follow silver and vice versa.
- And it has been extraordinarily bullish. Most people don’t know much about platinum, but it is a market that futures traders are somewhat attracted to at times when silver starts moving because platinum is part of the silver family.
- That being said, what I find interesting here is that we have the RSI drifting lower while the price is drifting higher.
So, what I mean by that is we have divergence. This is a market that’s overdone. And I think we are getting close to the idea of perhaps being extraordinarily overbought and this divergence could lead to something rather ugly. That ugliness would probably be somewhat short-term. So, I am watching the $1,400 level because if I think if we drop down below there, we could have a little bit more significant drop perhaps to the $1,250 level. Now, if you don’t trade platinum, that’s fine, but this will have a knock-on effect in the metals markets. So that is worth paying attention to as well.
On a Move Higher
If we continue to go higher and break above the $1,500 level, then it could be worth getting long and trying to aim for the $1,600 level as platinum does have a history of just grinding forever in one direction or one range or whatever. So, it’s an interesting market. It is one that I think you should pay attention to. It’s a great market to trade. It’s very stable, as you can see. Maybe not as exciting as some of the other ones, but you know, sometimes you need a market that’s a little bit more technically driven. So, watch this chart. It’s very interesting at the moment. 1500 of course is a major resistance barrier. But if we break down below the $1400 level, then we could see a bit more of a drop.
Ready to trade our daily Forex analysis? We’ve made a list of the best forex demo accounts worth trading with.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.