TPLM1! trade ideas
Platinum might have set un a long-term baseThe precious metals markets are looking pretty bullish right now, and I think that platinum might have set in a major base at $1150 in February. It's still too early to determine whether or not the down trend in place since last July is over, but technicals are telling me that a long term low might be established if all metals rally in March. The risk/reward ratio for a long strategy with a stop below $1140 (watch out for spreads on this metal) appears attractive, and my first upside target is at $1290. If all goes well, a new rally will lead to a breach above $1300 later this year.
I'm bullish above $1150 and will remain confident on this strategy so long as platinum remains above $1180 (horizontal monthly support).
Platinum: The most bullish precious metalWith Platinum, my long entries in the precious metal market comes to an end. Notice the decisive early break-away happened in this metal, one day prior to Gold and Silver. What a precious metal trader should notice other than this is the congestion which clearly takes place above the bearish TL. This clarity does not exist in other metals, and therefore makes Platinum the most bullish of all. I am getting impatient to go long!
PL1! daily TAThere is a possible EW count for this pair on the chart. If the view in this chart holds true in its entirety, which I think is not very likely, because the lack of a Fib ratio relationship between the waves makes it imperfect, and therefore open to failure, the LMLH will be broken by the W4, which will then visit it again around 23 March 2016. One may wish to wait until that day, or trade it as it breaks the LMLH to the downside, keeping targets tight. If the price leaves its final micro trend before reaching the TL, a short trade is again possible.
PL1! weekly TAThe monthly look warned us about an imminent reversal, but I have no interest in getting into the train too early. The price has not yet reached the ML. And notice I choose my anchor placed between P1 and P2 of the pitchfork for a better fit, rendering the UMLH as the action line. Thus, I am waiting for a continued bearish action. The final arbiter will be the price behavior at the UMLH. On the other hand, the price may fall down without even reaching the UMLH, in which case the short trades should be led by a lower time frame analysis.
PL1! monthly TAI would love to be on the long side of the market for this precious metal after the green TL is broken. The price is headed to test the old lows, and I am suspicious if we will hit the horizontal red line or not. In any case, it seems we will test the green TL in the immediate future. If it's broken, it will mean the correction starts, and it may most probably last until a retest of LWL3. As an alternative scenario, the green TL may be broken with some lesser strength; price sticks to LWL4 and then brake it. One could find signals and indications about which scenario will come true by looking at the behavior of the market at the breakout level. But what would be most ascertaining for the bulls, as the third scenario, is the price continuing to decline without touching the greed TL. Then it would be frightening to go long, but of the most assured at the same time.
Platinum finds a support level just ahead of the fed rate dec.with the feds interest rate decision coming up on the 16th i think people will be looking for safer assets to put their money into and platinum is at a very long term support level and at a shorter term support level... i would probably wait to actually take a position at least till the upper resistance trend channel is broken.
A metal more hated than Gold Only stocks carry long term value at all time high levels! Metals at 8-10 years lows do not!!! :-)
The world has become very strange in last 3 years. These spreads will adjust at some point, but we don't know when and how.
Looking at Platinum only, we see it is even more bearish than Gold, however it is reaching interesting levels.
Monthly:
- Long term bearish Ichimoku setup has been valid since July/2014
- Price reaching a very important zone which acted as support/resistance zone which acte
during last 12 years!
- Heikin Ashi candle is bearish with lower low, however smoothed haDelta has started to build some positive divergence
- EWO has reached an extreme low, last seen during 2008 price collapse!
It may take a few more months, but 800-850 zone may slow down sellers again!
Daily:
- Clearly bearish trend and Ichimoku setup
- Price reached lower side of vearish trend channel, price got too far away from Kijun and Kumo (equilibrium)
- Heikin Ashi candle body shrinks with smoothed haDelta ticking higher. -> consolidation or early signal for possible pull back
- EWO is also extremely low, we should see a corrective wave soon
Strategy:
For now only watch for a max. 0,5 risk unit swing long! Take the trade only if Heikin Ashi pull back signal confirms
Level to watch on PlatinumChart is very self explanatory, price is looking to retest the 50% Fibonacci resistance area (Confluent with the descending trend line & the Daily 100 moving average). The weekly chart also hints towards a loss in bullish momentum. Looking to short on a retest of resistance upon confirmation of course.
Cheers =)
Platinum Trades at a Discount Against GoldPlatinum has been on a steady decline with slow demand.
Platinum trades at a discount to gold, a condition that occurred last month. The spread between the two precious metals has tightened, but were at the widest in two years. Platinum, although grouped in with gold and silver as a precious metal, is typically lumped into the industrial group with palladium. Platinum has many uses in industry, most notably in catalytic converters.
With economic data deteriorating globally, there has not been much demand for the metal, which is more rare than gold. The spread between the two widened because gold is an infamous “safe haven” hedge against economic and geopolitical uncertainty.
However, some analysts believe the spread will continue to tighten as platinum rebounded off its 5 year low. Caroline Bain, senior commodities economist at Capital Economics, said demand from China could spur a rally. Although demand has been weak of late, China is notorious for picking up platinum when it is discounted to gold.
Technically, volume has been weak and dropped off in recent weeks. Prices found support near $1,155, while a close below this level opens up a potential drop to $1,087/85. While, if prices can gain a little strength, prices could challenge $1,224/28 – near the 20-week EMA. The RSI is hovering just above an “oversold” level at 35, but prices have been comfortable within the lower bound.
A rally in platinum will likely need a catalyst for ignition.
Original Post...http://bullion.directory/platinum-trades-at-a-discount-against-gold/
