Wanted to share a interesting trade potential for Platinum.
Fundamental Bias: Long Term Bullish ; Medium Term (Mildly Bearish)
I am still developing my fundamental knowledge on Platinum. But so far from what I have, I have a bullish view on platinum based on the following factors:
1. Upbeat global growth to underpin demand for commodities, including industrial metals such as platinum.
2. Overestimated decline in automative demand due to decline in european diesel vehicles, being offset by increases in gasolie and hybrid/ev vehicles.
3. Undervalued historically.
4. Higher oil prices will likely boost cost pressures in mining (mild supportive factor), which will lead to higher produced platinum prices.
5. Underestimated supply risks due to declining mining investment (mild supportive factor).
Risks to bias:
1. Strengthening US Dollar.
2. Declining precious metals and industrial metal prices.
3. Further negative sentiment on demand due to declining diesel vehicles therefore decrease in demand for platinum.
4. Global risk off sentiment.
Technical Bias: Long Term Bullish ; Medium Term Neutral
A key factor supporting my trade bias for Platinum is the Weekly and Daily chart. Prices have reached major yearly key levels of support and respected such levels and rebounded sharply. Stochastics and momentum seems to show bearish momentum to be waning.
I’ll be looking for bullish reversal patterns on smaller time frams (Daily, 4h) and price holding above identified support levels marked blue for a long term long entry.