CFD Update: Platinum, Support hold starting new reversal?

Today our focus is on platinum as price continues to post a strong rebound after holding from key support in yesterday’s session.

Buyers have so far added 1.60% today after we saw a new hold at 979. This level first developed as support back on the 15^th of March after sellers were defeated. This point set up a new short term rally. Price was stopped at the key supply area, and once again, we saw a new raid by sellers taking price back down to 979.

Overnight, things looked dire for bulls at one stage as price was hammered through support, hitting 958. The USD was a factor as it climbed, and other precious metals were also on the bid. Momentum returned into the NY session, and buyers flooded back, cancelling out the move lower to re-hold 979 support.

At this stage, we can see not only support but a double bottom and false break. These are bullish signals. Price so far today is also backing up the signals. We want to see price hold above support and continue to move higher to give these signals confirmation. A break back below support cancels out the price signals.

If we do see a rally back up to supply and resistance, we would think we could see some seller pressure there. Any new higher lows we want to see from above 979 support to maintain the price signals.

Keep an eye on this Friday’s US Employment data as it could have an impact on the USD, which could impact precious metals.

Platinum D1 Chart

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Joseph Jeffriess, Market Analyst in Eightcap
Eightcap is one of the leading CFD brokers in the market, providing online trading services to a wide range of clients from around the world. They offer 1,000+ CFDs based on Forex, commodities, indices, shares, and cryptocurrencies. The well-established trading company was founded in Melbourne, Australia, in 2009, and is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).