Buy Stop: Above 1013
Stop Loss: Below 899
Platinum Chart Analysis
Platinum Technical Analysis
On the daily timeframe, XPTUSD: D1 went up from the downtrend. A number of technical analysis indicators have generated signals for further growth. We do not exclude a bullish movement if XPTUSD rises above the last upper fractal and upper Bollinger band: 1013. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal, the last lower fractal, 11-month low and the lower Bollinger line: 899. After opening a pending order, move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (899) without activating the order (1013), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Precious Metals – Platinum
The rise in world prices for oil and natural gas may increase interest in projects in the field of hydrogen energy. Will the XPTUSD quotes grow?
Platinum is used in catalysts for the chemical and petrochemical industries, as well as in hydrogen energy. In addition, platinum is used in catalysts for diesel engines for cars and trucks. Diesel demand may stabilize as fuel prices rise. Note that according to the consulting company LMC Automotive, sales of passenger cars and light commercial vehicles of all types of engines in the world in the first half of 2021 increased by 28% compared to the same period in 2020 and reached 42 million units. The World Platinum Investment Council expects an increase in demand for platinum in 2021 due to a possible global shortage. In his opinion, the global production of this metal in 2020 decreased by 18% due to the coronavirus, and the global demand – by only 5%. Note that more than 40% of the demand for platinum comes from industry.
By Dmitry Lukashev – IFC Markets