The Wedge Break Trade On Platinum

Since 2021, platinum's price has been characterized by sideways consolidation, carving out a technical pattern known as a wedge. This formation, defined by converging trendlines connecting progressively higher lows and lower highs, indicates market indecision and typically precedes a volatility expansion. Think of it as a spring coiling tighter before releasing.

The critical levels to monitor are $1,020 on the upside and $875 on the downside. A decisive and sustained move above $1,020 would confirm a bullish breakout, potentially initiating a strong uptrend. Conversely, a confirmed break below $875 would signal a bearish breakdown, likely leading to a significant decline.

While underlying factors such as platinum's industrial uses, its rarity, and inflationary pressures from fiat currency printing could support a bullish case, potential macroeconomic headwinds like a recession could curb demand. Ultimately, the chart pattern itself provides the clearest signal; traders should await confirmation of either a breakout or breakdown before committing to a directional bias.