Like gold, platinum peaked above $1900 per ounce last year but has fallen a lot further since. While gold is currently at $1618, platinum is at $1413. This reflects a much greater industrial component in the demand for platinum compared to gold. In a “risk on” environment platinum may also have more upside potential.
I posted a blog earlier today, noting the possibility of further upside in the EUR: USD. Precious metals are likely to benefit from any further US Dollar weakness.
At this stage, the horse has to some extent already bolted for EUR: USD given the large moves of the last couple of days. In these circumstances it can pay to look for other set ups that would benefit from a weaker dollar but which may still have a relatively good reward: risk profile. Platinum looks a candidate.
As the daily chart below shows, platinum is in the process of rejecting the support of a well established triangle formation
One approach to strategy would be to buy looking initially for a return to the triangle resistance. If price was to break above this resistance, buying at this level would provide an early entry for a triangle breakout strategy with potential for a significant correction of the whole move down from the peak at 1725.
A typical approach to the intitial stop would be to place it behind the current triangle support line allowing some filter to accomdate false breaks