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LD_Perspectives
May 14, 2021 8:12 PM

Impala Platinum - Long Term Caution 

IMPALA PLATINUM HLGS LTDJSE

Description

One of the shares I will be highlighting in the upcoming week's research note(s):

- Long Term Holders: Caution; Test of Prior Multi-Year Breakdown Level and Fibonacci extension.

- Reviewing the monthly chart, it’s important to note the share trading at it’s prior multi-year peak, with the currently pullback being in line with the same breakdown level of July 2008.
- This level also coincides with the 4.236 Fibonacci extension.
- Also note the bearish divergence as per the monthly chart.
- As noted in our prior research note dated 23/03 at R2115, it’s peer Anglo American Platinum traded at a multi-year peak, created an opportunity for long term holder to reduce their positions at attractive levels. As of Friday’s close AMS traded R345 lower to R1770.

- As they say: ‘Sell when you can, not when you’re forced to!’


Comments
Wynand52503
I'm pretty clueless on these graphs. so have no idea what they actually mean.
Did the 2008 breakdown not coincide with the financial crisis and the fall in platinum price from close to $2000 dollars down to $900? So not really comparing apples with apples?
Do you see the same swing in PGM happening this time around as the world economy starts to work again after the vaccination drives?
Thinus5422
Thank you for great analysis .Spot on with AMS.
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