Platinum has been dead money for years, but now it may be coming to life.
The first pattern on today’s chart is the falling trendline along the highs of last May and October. The metal just ripped through that resistance with its biggest daily gain since December 2022.
Next, MACD is rising and the 8-day exponential moving average (EMA) is above the 21-day EMA. Those signals may reflect bullish short-term momentum.
Third, prices have been near the 200-day simple moving average since late last year. That suggests the long-term trend is neutral, which may create the potential for a new uptrend.
Next, why would such a move begin? A Bloomberg report yesterday may have provided clues: Chinese demand jumped as retail buyers amassed coins and bars as an alternate to gold.
That brings us to the final indicator: a monthly ratio chart comparing platinum to gold. Its significant underperformance for decades could make some investors think it’s relatively undervalued.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the falling trendline along the highs of last May and October. The metal just ripped through that resistance with its biggest daily gain since December 2022.
Next, MACD is rising and the 8-day exponential moving average (EMA) is above the 21-day EMA. Those signals may reflect bullish short-term momentum.
Third, prices have been near the 200-day simple moving average since late last year. That suggests the long-term trend is neutral, which may create the potential for a new uptrend.
Next, why would such a move begin? A Bloomberg report yesterday may have provided clues: Chinese demand jumped as retail buyers amassed coins and bars as an alternate to gold.
That brings us to the final indicator: a monthly ratio chart comparing platinum to gold. Its significant underperformance for decades could make some investors think it’s relatively undervalued.
Check out TradingView's The Leap competition sponsored by TradeStation.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.