Platinum Escapes From the Sideways Trend

The possibility of invasion still weighs on the markets, and we are constantly bombarded by news from the border. For example, at the end of the Asian session, we recently got information that Ukrainian forces opened mortar fire on four settlements in the area controlled by the Russian-backed rebels. This news is causing a subtle shift towards the risk off mode, with the rapid gain in the safe haven assets, like Gold for example.

But today, we will talk about Platinum, which is joining Gold in the movement north. We will focus on Platinum because we are receiving a long-awaited end of the sideways trend and a very promising buy signal. I am talking about the sideways trend that lasted for about a month and created a pennant pattern (red lines). It was not present randomly but on the crucial horizontal (1030 USD/oz – orange) and dynamic resistance (blue downtrend line).

Breakout of the upper red line seen today ends the boring sideways trend and brings us a legitimate, long-term buy signal. Positive sentiment is here, as long as the price stays above the orange support. Chances for the comeback are rather limited.

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