Platinum is trying to bounce back after the release of the World Platinum Investment Council’s report. According to the report, in 2023, the platinum supply/demand balance will give a deficit for the first time since 2020. Mining production is expected to remain flat while investment demand is expected to rise significantly. Despite the report, the up move remains short of any big change. From the technical standpoint, the 2-year downtrend is still ongoing. If the positive pressures increase, a jump to the upper line of the trend channel is a possibility.
For the down moves, the zone between $960 and the 200-day moving average will be the main support for now. A downside break might change the outlook for the worse. RMI’s change of direction is not helping as well. The last 3 times when RMI cross its signal moving average to the downside when it is over or very close to 70, platinum fell hard. A possible down cross in the coming days should be watched as a warning of caution. Despite the bad technical outlook, down moves closing to the lower line of the trend channel, or an upside breakout might give buying opportunities as well.
