Platinum

R

romik

Interested to hear from other traders regarding platinum futures. I am going to post 3 charts here and my brief views.

Starting with a monthly chart here we seem to be having a bearish divergence here in RSI, also MACD about to cross downwards, CCI recent double top. 20 MA is still looking bullish though.
 

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Daily's 20ma is bearish, but we are getting A class bullish divergence in all 3 oscillators.

So my expectation is for price to bounce here towards 1150.00 soon, but what next considering all 3 charts?
 

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Interested to hear from other traders regarding platinum futures. I am going to post 3 charts here and my brief views.


Monthly chart

Starting with a monthly chart here we seem to be having a bearish divergence here in RSI, also MACD about to cross downwards, CCI recent double top. 20 MA is still looking bullish though.

ChartofPLF1160952519.gif


Weekly chart

Weekly chart does look bearish to me, short grails in RSI, bearish MACD, 20ma turned downwards.

ChartofPLF1160952430.gif


Daily chart

Daily's 20ma is bearish, but we are getting A class bullish divergence in all 3 oscillators.

So my expectation is for price to bounce here towards 1150.00 soon, but what next considering all 3 charts?

ChartofPLF1160952188.gif
 
I have been staying away from platinum for a while now, due to its high price and questionable relationship with silver/gold as an inflation hedge.

While jewelry uses have certainly increased, that is predicated upon increasing wealth and is probably not well correlated with gold price.

What I think is MUCH more important with platinum is its use as an industrial material. Currently, that's for catalytic converters. In the future, its main use will be in fuel cell technology. That's a big use. The key here is that Platinum and Palladium are largely interchangeable. In fact, if you go back a few years, you will find that palladium was in fact valued higher than platinum.
 

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So, since the two are somewhat interchangeable, they should probably trade more in tandem, but don't.

Most platinum holdings are outside of north america. In north america, there is some palladium.

Palladium prices have been very depressed but have rallied somewhat recently. I like this PM for the long term more than platinum, even though reserves for palladium are not insignificant (even above ground).

Can't help you trade platinum better, but some fundamental analysis about why palladium might have stronger support can't hurt.
 

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Thanks for your posts, interesting stuff. As I try not to get into the fundamentals as my access to resources is minimal and so is my desire to understand fundamental analyses, I would like to hear from TA traders.
 
Quote from romik:

Daily chart

Daily's 20ma is bearish, but we are getting A class bullish divergence in all 3 oscillators.

So my expectation is for price to bounce here towards 1150.00 soon, but what next considering all 3 charts?

ChartofPLF1160952188.gif
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Bullish divergence on daily has indicated a good entry for a long position, nice outcome.

Daily chart PL.gif
 

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