- 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.
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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.
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