Platinum is leading the precious metal declines with a $19.1 slump in prices. The precious metal group fell after the release of consumer pricing data that showed a fall into negative territory a -.1 percent in October.
Price action is trading into the apex of the triangle and halted at support present within the pattern at $1,400 per ounce. There are two scenarios:
If platinum breaks through the weekly triangle support, it will trade down to the supporting ascending triangle at $1,380. This would be platinum’s last line of defense before a potential decline to $1,330 per ounce – prices not seen since July.
A decline in prices is pulling the moving averages lower. The current weekly candle represents are large $142 price range.
The second option is that $1,400 creates an environment for some demand. Topside potential is seen at $1,426 and $1,446 (the 20 EMA). If the 20 EMA is over taken then the descending trend line could be challenged.
A sloping, neutral RSI and upward slopping -DMI and ADX is suggesting more downside awaits.