Precious Metals: Platinum is overbought and could decline

 

A decline of platinum to 1640/1600 is possible short-term. The precious metal is leaning against the resistance line of the past twelve years. There is a divergence between the price of platinum and the RSI indicator on the daily and weekly charts. Accordingly to the Commitment of Traders report (COT),  futures funds have accumulated almost 55,000 contracts of the precious metal. It represents the highest level ever recorded. At the contrary, short platinum positions are at the lowest level.

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