Platinum Group Metals Are Breaking Out

Platinum and palladium both surged today in a clear sign that the next leg of their bull market has begun.

Last week I published an analysis of platinum and palladium, known as the platinum group metals (PGMs), where I outlined a strong bullish outlook and anticipated an imminent breakout. That move has started today, with platinum surging nearly 3% to a 14-year high and palladium rising just under 5%. In light of this, I am sharing a brief update to highlight what has happened and what I expect next. For full context and a deeper understanding of today’s update, please refer to my recent in-depth reports on platinum and palladium.

Let’s start with platinum. As I explained last week, since its mid-October peak it had been trading within a range, with support between $1,480 and $1,520 and resistance between $1,720 and $1,760. I was watching for a breakout above that resistance zone on strong volume to confirm that the next leg of platinum’s bull market had begun, and we saw that clearly today. Importantly, the breakout was accompanied by strong volume, which adds further credibility to the move. For more on why volume is essential in confirming breakouts, see my recent tutorial.

After today’s breakout, I expect platinum to continue much higher from here as its bull market heats up, and the only thing to do now is sit back and let this exciting and lucrative thesis play out. I believe it has many years left. Read my tutorial about how to let your winners run, stay confident, and tune out negativity in scenarios such as this.

Next, let’s look at palladium. It had a strong day, surging nearly 5%, which is an even bigger move than platinum. However, it’s worth noting that palladium has not yet broken above its $1,640 to $1,680 resistance zone the way platinum did.