Platinum (PL), a precious metal just like gold, seems to be devoid of any direction during the market trading hours. However, analysts believe that the precious metal is forming a bottom before it can move towards a bullish cycle.
The commodities sector has turned sideways due to the successive rate hikes from the Fed, but if we look at the long-term outlook, there's no doubt that it remains bullish. In fact, the technical readings of the daily and monthly chart of Platinum suggest that the bearish correction is almost complete.
In the meantime, Platinum could extend a little bit lower as well unless the market situation changes but the long-term trends are pointing towards a bottom.
The use of Elliott's wave on the PL month chart suggests that the rally starting from 1992 ended at 2308.8. This was a wave I and can be classified as the impulse wave. This was followed by a pullback which touched 562 and can be marked as wave II. And the start of wave III sent the precious metal higher!
Overall, it seems that Platinum is forming a bottom, and since we are talking about the monthly chart, a bullish trend in Platinum is expected to happen in 2023.
And if we look at the daily charts, it appears that Platinum is in a correction cycle and is in wave II. Furthermore, the full application of the Elliott wave on the daily charts also suggests that PL is looking to form a base from where it can bounce higher.
But for now, the near-term trend in Platinum can turn in any direction depending on the market situation. However, we all know that commodities like Platinum, Gold, and Silver will always be in high demand regardless of the supply-demand balance.
So in the long-term, the commodities markets will turn higher as all commodities are limited and can be generated out of thin air.