Platinum breaks out decisively to four-year highs

Platinum reached its highest price since June 2021 on 9 June above $1,200 amid a major shortfall in supply. The World Platinum Council expects insufficient supply of nearly a million ounces this year amid disruption in South African mining and a surge in demand from China.

Trading a chart like this is obviously challenging for many strategies because it’s difficult to predict how much longer momentum might continue; eventually the price will need to consolidate or retrace. The 50% daily Fibonacci retracement around $1,050 would traditionally be an obvious place to buy in but given the strength of the recent gains it’s questionable whether the price might just move below there if there’s a deep retracement.

February 2021’s high around $1,335 would be an equally obvious potential resistance. However, under the circumstances of such strong movements and clear overbought conditions, confident new buyers might strike a compromise between buying the peak and waiting for the bottom of a potential retracement. The reaction to American inflation on 11 June might make the situation clearer.

This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.