In fact, if one were to go by the current position of the white metal, one is forced to show optimism on several counts. The metal has broken the one-year-old channel.

This is a very bullish sign and hints at a bright outlook. A similar situation had occurred during the last week of April this year when the metal touched a high of $1,450 per tonne. Though the metal had broken the channel then, the range was very narrow. Since the rally could not be sustained, the penetration was not followed by a higher bottom.

The position, however, is much better during this time. The metal has not only moved above the falling channel, it has also managed to post a higher bottom. Such a move has taken place after a duration of almost 13 months.

Apart from positing ahigher bottom, the white metal has also crossed its immediate top of $1,385. This move confirms the changed scenario. The changed position of the chart suggests that the metal will remain bullish in the near future.

The next major hurdle for the white metal is in the range of $1,529 level, which is around $140 away from the current level. The daily moving averages have entered into positive phase. In other words, the short-term moving average has moved above the medium-term average.

The 21-day Relative Strength Index (RSI) has also touched a 12-month high, confirming the bullish momentum. The RSI's rally to a 12-month high is very bullish sign. Other oscillator, Moving Average Convergence Divergence (MACD) has turned bullish. Overall, if one were to consider all these factors, the white metal is expected to remain firm in the near future.