FOREX NEWS: Platinum (XPT) Holding Key Supports, Preparing to Breakout
Spot Platinum ended the week lower at $1376.30, down by 3.47 percent, with the losses extending for the second successive week. The declines were however cut short and the precious metal rebounded from $1360.00- 1365.00 a troy ounce, where the prices for now look to be well supported.
For the week, Platinum was trading in a tight $1360.00- 1400.00 range, following a similar trend set by the other leading precious metals.
Platinum for April delivery was seen oscillating above and below its spot price and ended last week’s session at $1375.70, with a basis of -60 cents*.
*Basis refers to the difference between the futures price and the spot price.
In fundamental data, open interest in futures rose to 60,923 contracts last week from 60,358, a week earlier, according to the CFTC. Commercials or hedgers were net short, while non- commercials; also referred to as large speculators were net long.
The Week Ahead
Platinum (XPT) for spot delivery ended Wednesday’s session with gains of 0.52 percent, settling at $1379.20, a troy ounce. Platinum prices rebounded after testing crucial near term supports at $1360.00- 1365.00 on Tuesday for the second time in three sessions; trend lines connecting the lows of December last year and January this year.
Watch out for these supports, as a close below, prices could slide to $1320.00- 1325.00; crucial medium term supports and breakouts of the symmetrical triangle chart pattern. Over the next few sessions, Platinum prices could remain in a tight range between $1370.00-1400.00. A breakout from the range and prices could either rally to $1450.00 or slip to $1320.00.
The medium to long term view remains extremely bearish with prices likely to slump to $1100.00 an ounce. However, a close above $1460.00 will negate the bearish view and Platinum prices could rally all the way to $1600.00- 1650.00, last seen in February 2013.
Look to short the precious metal on gains leading to $1400.00- 1410.00, or if prices breach supports at around $1350.00.
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