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Platinum Technical Analysis: Are the bulls out of the woods?

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(Kitco News) - Platinum has had an interesting price rally over the past couple of weeks and the price has managed an 8% rally leading into month-end. The precious metal has been hit very hard over the last year due to the semiconductor shortage and as it is an important component in the production of cars until that situation abates there could be a downward bias. Recently, there has been a bit of a squeeze in production due to the drop in value of the precious metal.

On the technical front, the price met a heavy bank of resistance at the 0.76% Fibonacci retracement. It is now the level to beat on the upside, but beyond that, the $11.04.45/oz area is the main resistance.

On the downside, the next big level of support comes at the green previous consolidation high. If that does manage to break the congestion area lies at $962.00/oz.

Although longer-term this market is still in a downtrend, this retracement could be the start of something more serious to the upside. Having said that, the bulls are not out of the woods just yet but a break of the aforementioned high on the chart would do wonders.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.