Peter Smith
Platinum (XPT) has broken below the ascending support of a rising broadening wedge on the weekly chart. This move signals a shift from expansion toward trend exhaustion, with price now testing a major horizontal level near the 2011 cycle highs.
The breakdown came with multiple warning signs. A bearish RSI divergence formed between the December and January highs, showing fading momentum even as prices climbed. The MACD then printed a bearish crossover and kept expanding to the downside, confirming the loss of bullish strength. Together, these are classic signals of a late-stage trend.
Price is now sitting on a key horizontal support zone near prior cycle highs. With the rising channel gone, sellers appear to be in control. The market behavior fits a distribution pattern: early participants exit while late buyers get caught near the top. If this level gives way, the next area of interest is the 50 EMA, which lines up with a high-volume demand zone. Similar setups have played out before, including one where platinum loses channel support near $2,170, triggering extended downside pressure.
Zooming out, the current structure fits a recurring pattern: sharp rallies followed by deep pullbacks toward major support zones. The platinum price $1,500 pullback scenario is one such historical reference, where volatility reset market positioning before the next move. Earlier bullish setups, like platinum reclaiming 50 EMA inside wedge at $2,100, relied on holding key support levels that are now actively being tested.
Peter Smith
