Yahoo Finance Platinum Price Forecast – The Forgotten Metal
Nowadays, finding a bullish outlook for platinum is as rare as discovering the metal itself. I think this is about to change as prices recently validated a bullish breakout.
10-YEAR CHART- Platinum bottomed at $755 in 2018 and launched into a series of higher lows and higher highs (the definition of an uptrend). That progression conquered the multi-year trendline and validated a bullish trend change. Sentiment remains depressed – it seems we have a new bull market, but nobody cares. Note the record breakout volume in September (bottom).
DAILY CANDLE CHART- After peaking at $1000, platinum is correcting into an intermediate cycle low. Prices are currently backtesting the multi-year trendline. Holding this area would be incredibly bullish, near term. Worst case scenario, if prices slip back below the 200-day MA, I see strong buying coming in near $800. Either way, the technicals, and recent breakout support a bottom and higher prices.
With a renewed bull market in precious metals, it’s just a matter of time before platinum begins to play catch up to gold. During the 2000s, platinum was twice the price of gold on several different occasions. I don’t know if prices will double gold again, but a return back to parity seems promising. Long-term investors may want to consider a ratio play outlined in my article titled – A Simple Strategy to Buy Gold for Less Than $1000.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit https://goldpredict.com/
This article was originally posted on FX Empire
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