Platinum price remains in the bull market but coronavirus concerns could add further pressure
- Platinum extended its correction from the recent highs above $1150
- The main trend of this precious metal remains bullish
- If the price falls below $1000, it would be a firm "sell" signal, and we have the open way to $900
Platinum extended its correction from the recent highs above $1150, but as long the price is above $1000, there is no risk of the bear market. Joe Biden was inaugurated as the 46th U.S. president this week, and he will sign today two executive orders aimed at speeding pandemic stimulus checks to families who need it most.
Fundamental analysis: New lockdowns worldwide could add further pressure on Platinum price
Platinum has advanced above the $1150 level this Thursday, but the price weakened this Friday as gloomy data reminded investors of the economic recovery struggles. Platinum has found strong support above the $1000 level, and despite the current correction, this precious metal will probably post its second consecutive weekly gain.
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New lockdowns worldwide and concerns over fresh COVID-19 outbreaks in China could add further pressure on Platinum price. The whole world has been facing the COVID-19 crisis for almost a year now, and the negative news is that vaccination progress slower than expected in some countries.
“2021 begins with expectations of reopening in second-half, as the key macro theme and consensus forecasts project a V-shaped recovery in global growth and corporate earnings. Still, many countries and sectors will bear the scars of the COVID-19 shock for years to come,” said Paul O’Connor, who heads the UK-based multi-asset team at Janus Henderson.
The business activity in Eurozone continues to decline while the situation in the U.S is not too much different. The U.S. December Retail Sales numbers were much worse than expected, while the terrible U.S. employment figures may indicate that even worse is coming.
President Biden’s $1.9 trillion COVID relief proposal still keeps the market in a positive mood as investors hope that U.S. stimulus will provide continued support for global assets.
Technical analysis: As long the price is above $1000 support, there is no risk of the bear market
Platinum has found strong support above $1000, and according to the rules of technical analysis, the main trend of this precious metal remains bullish.
The current resistance levels are $1150 and $1200; $1000 and $900 represent the critical support levels. If the price jumps above $1150, it would be a signal to buy Platinum, and we have the open way to $1200.
On the other side, if the price falls below $1000, it would be a firm “sell” signal, and we have the open way to $900.
Platinum price remains in the bull market, but new lockdowns worldwide and concerns over fresh COVID-19 outbreaks in China could add pressure on Platinum price in the upcoming weeks. Technically looking, as long the price is above $1000 support, there is no risk of the trend reversal but, if the price falls below this support level, it would be a firm “sell” signal.