Will Platinum Fill the Gap to $936? A Deep Dive into Technical, Fundamental, and Sentimental Analysis
Introduction
Platinum has recently experienced a notable bullish rally, pushing prices beyond $1,100 USD per ounce. However, technical signs are beginning to flash warnings of an impending correction. Many traders are now eyeing a significant price gap between $936 and $972, which has yet to be filled. Could we see a return to this demand zone? This article explores that possibility using technical, fundamental, and sentiment analysis.
📊 Technical Analysis
The 4-hour chart of Platinum (XPTUSD) paints a compelling picture of a potential reversal in play:
🔍 Chart Structure
After a sharp upward climb, price action is now showing signs of exhaustion.
A double top or M-pattern has formed, a classic signal of bearish reversal.
A possible head and shoulders formation further suggests weakening momentum.
📉 Gap Zone
The highlighted price gap from $972 to $936 remains unfilled.
Markets tend to “retrace” and fill gaps due to imbalances or untraded zones — this gap now acts as a price magnet.
🧭 Key Levels
Resistance: $1,110 – $1,115 (rejected multiple times)
Support: $972.15 and $963.67 (top and bottom of gap)
Current Price: $1,086.70
With current price failing to maintain its highs, a break below $1,070 could trigger a steep drop toward the gap.
🌍 Fundamental Analysis
Fundamentals are equally pointing toward a cooling phase for platinum:
📉 Demand Side
Platinum is used extensively in automotive catalytic converters, hydrogen fuel cells, and electronics.
With signs of global economic slowdown, especially in key regions like China and Europe, industrial demand may weaken.
Slowing EV production and lower catalytic converter usage due to alternative technologies also reduce demand pressure.
📈 Supply Side
Major producers like South Africa and Russia currently show no significant supply disruptions.
Stable or rising output contributes to potential oversupply.
💵 Macro Factors
A strong U.S. dollar tends to pressure platinum prices downward.
With central banks maintaining high interest rates and inflation cooling off, platinum becomes less attractive as an inflation hedge.
😕 Sentimental Analysis
🗣️ Retail Sentiment
Many retail traders turned bullish after the recent breakout, potentially creating liquidity traps near the top.
Euphoria has now started fading, and profit-taking is becoming more common.
🏦 Institutional Outlook
Institutions may be rotating capital toward gold and silver, traditional safe havens, especially during economic uncertainty.
Lack of new bullish catalysts can cause bearish sentiment to spread in the short term.
📌 Conclusion: Gap Fill in Sight?
The technical setup, combined with weakening fundamentals and neutral-to-bearish sentiment, suggests that Platinum is likely to retrace to fill the gap between $936 and $972.
Unless a new bullish catalyst emerges — such as geopolitical disruption in mining or a sudden surge in industrial demand — the path of least resistance appears to be downward.
✅ Final Take
Watch for breakdown below $1,070: A key signal that momentum has shifted.
Targets: First at $1,025, then $972, and finally $936.
Buyers may re-emerge at the gap zone for a possible bounce but that’s a story for another time...
Introduction
Platinum has recently experienced a notable bullish rally, pushing prices beyond $1,100 USD per ounce. However, technical signs are beginning to flash warnings of an impending correction. Many traders are now eyeing a significant price gap between $936 and $972, which has yet to be filled. Could we see a return to this demand zone? This article explores that possibility using technical, fundamental, and sentiment analysis.
📊 Technical Analysis
The 4-hour chart of Platinum (XPTUSD) paints a compelling picture of a potential reversal in play:
🔍 Chart Structure
After a sharp upward climb, price action is now showing signs of exhaustion.
A double top or M-pattern has formed, a classic signal of bearish reversal.
A possible head and shoulders formation further suggests weakening momentum.
📉 Gap Zone
The highlighted price gap from $972 to $936 remains unfilled.
Markets tend to “retrace” and fill gaps due to imbalances or untraded zones — this gap now acts as a price magnet.
🧭 Key Levels
Resistance: $1,110 – $1,115 (rejected multiple times)
Support: $972.15 and $963.67 (top and bottom of gap)
Current Price: $1,086.70
With current price failing to maintain its highs, a break below $1,070 could trigger a steep drop toward the gap.
🌍 Fundamental Analysis
Fundamentals are equally pointing toward a cooling phase for platinum:
📉 Demand Side
Platinum is used extensively in automotive catalytic converters, hydrogen fuel cells, and electronics.
With signs of global economic slowdown, especially in key regions like China and Europe, industrial demand may weaken.
Slowing EV production and lower catalytic converter usage due to alternative technologies also reduce demand pressure.
📈 Supply Side
Major producers like South Africa and Russia currently show no significant supply disruptions.
Stable or rising output contributes to potential oversupply.
💵 Macro Factors
A strong U.S. dollar tends to pressure platinum prices downward.
With central banks maintaining high interest rates and inflation cooling off, platinum becomes less attractive as an inflation hedge.
😕 Sentimental Analysis
🗣️ Retail Sentiment
Many retail traders turned bullish after the recent breakout, potentially creating liquidity traps near the top.
Euphoria has now started fading, and profit-taking is becoming more common.
🏦 Institutional Outlook
Institutions may be rotating capital toward gold and silver, traditional safe havens, especially during economic uncertainty.
Lack of new bullish catalysts can cause bearish sentiment to spread in the short term.
📌 Conclusion: Gap Fill in Sight?
The technical setup, combined with weakening fundamentals and neutral-to-bearish sentiment, suggests that Platinum is likely to retrace to fill the gap between $936 and $972.
Unless a new bullish catalyst emerges — such as geopolitical disruption in mining or a sudden surge in industrial demand — the path of least resistance appears to be downward.
✅ Final Take
Watch for breakdown below $1,070: A key signal that momentum has shifted.
Targets: First at $1,025, then $972, and finally $936.
Buyers may re-emerge at the gap zone for a possible bounce but that’s a story for another time...
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.