Platinum, Palladium Suffer Serious Technical Damage This Week

20 May 2010, 10:05 a.m.
By Jim Wyckoff
Of Kitco News www.kitco.com

Nymex platinum and palladium futures markets this week have seen strong selling pressure that has resulted in major near-term chart damage which has put the bears in firm near-term technical command. Platinum futures this week have shed around $200.00 an ounce, while palladium futures are down around $120.00 an ounce this week.

The daily bar chart for July platinum futures shows that prices Thursday spiked to a fresh three-month low of $1,490.30. Prices are presently in a steep two-week-old downtrend on the daily bar chart. The next downside technical objective for the empowered platinum bears is to push and close prices below solid chart support at the February low of $1,456.00 an ounce.
It would take a close in July platinum futures back above strong technical resistance at $1,625.00 to provide the bulls with some fresh upside near-term technical momentum.

June palladium futures are in a steep three-week-old downtrend on the daily bar chart and hit a fresh 3.5-month low. The next downside price objective for the powerful bears is to produce a close below solid technical support at the February low of $382.00. It would take a close back above major psychological resistance at $500.00 an ounce to provide the palladium bulls with fresh upside near-term technical momentum and repair this week's chart damage.

 

 

By Jim Wyckoff, contributing to Kitco News; jim@jimwyckoff.com