Platinum builds a bullish cup and handle

We highlighted a tactical base for platinum futures in our September 24 The Chart Check report. Platinum completed this pattern and achieved the upside counts at 1725-1750 before consolidating lower. This pullback to 1481.20-1489.20 held near the tactical base breakout level at 1511.40, keeping the overall price structure bullish with the potential for another tactical base ahead of continued higher prices for platinum.

Platinum futures are forming a mid October into December bullish cup and handle pattern. Holding the Fibonacci retracements of the late November into early December rally at 1641 (38.2%), 1612 (50.0%), and 1583 (61.8%), with the improving 13-, 26-, and 40-day moving averages from 1622 to 1598, would keep the developing handle in place. See our latest Tech Speak 101 for more on Fibonacci retracement levels.

A decisive breakout above 1736 (handle peak) would confirm the cup and handle pattern and favor further upside beyond the mid October peak at 1770 to pattern counts at 1980-1990.

Chart 1: Platinum futures: Daily chart