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Platinum has broken out, first target is $960 for short term traders and $1035 as a major target.

Platinum_20190419_08.27.png

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@robdyson,

Well spotted. I was waiting for someone else on the IG Community to share any potential breakout and potential trend to trade in relation to Commodities. 👏

Looking at the 'daily' it seems it is making new 'Higher Highs' and new 'Higher Lows'. 

824127346_SpotPlatinum_20190419_08_50.thumb.png.976d76d36fda8983b090de26c590a04c.png

This is a bullish indicator. 

Platinum is also trading above its 20, 50, 100 and 200 DMA on the 'daily'.

1051659283_SpotPlatinum_20190419_08_52.thumb.png.e7cd74bdfe9bcecff1826f2d40936823.png

This too is a bullish indicator. 

It is trading above the dots on the Parabolic SAR which is a potential signal and a potential confirmation for a trend change. 

1866450780_SpotPlatinum_20190419_08_53.thumb.png.823edd9e5e9284ecfddf24ec2c049763.png

So there are enough positive indicators and I would expect some of the Commodity traders to have got in earlier. 

One of the things I do (not always) is place the smallest trade possible on any breakout of a trading range that crosses its 20 DMA. Then when it meets certain parameters in relation to indicators I add to the positions. So for example it crosses certain moving averages, etc. This way I build my position up with the trend and price strength. It also means I get in as early as possible. Sometimes waiting for signals may mean that most of the move is missed as it lags behind. From a risk perspective if the breakout fails to kick on and the trade goes against me then my stop loss exits me out of the trade with a small loss. Losses will be incurred so trade selection is vital to keep these to a minimum. 

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Posted (edited)

Nice spot. Added to watchlist.

Edited by PandaFace

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One thing to remember is that Platinum is trading at a cheaper price than Gold. Gold and Silver have left Platinum behind since the rally started back in August of last year. It seems Platinum has had enough and wants to begin to assert some authority on the price action. 

Platinum of course has several important industrial uses. I think Platinum will try and hit the $1000 dollar area as that is an important psychological price point and these rallies love nice round numbers as a target. This is seen time and time again in Commodities. Platinum is both an industrial metal and a precious metal. 

Platinum is also known at the 'Rich Man's Gold'. This could lead to a reversal in pricing between Platinum and Gold. Platinum should be more expensive than Gold and so there could be a shift in speculative capital from Gold into Platinum. Platinum could attract extra volatility as Gold and Silver are more liquid markets. 

I do not know what will happen in the future for Platinum prices but I shall follow the price action closely.

Platinum will not follow any of my thoughts or assumptions as to what I think may happen. Platinum is not obliged to follow any of my trading strategies or plans. Platinum may not follow the path I have mapped out in my mind and nor does it have to. Platinum will do what it will do just like any other Commodity.

As a trader the key is whether I can profit from the price action or not. Prices can change like the weather and so can traders views and opinions. I know from my experience that on many occasions the price action changes my views and opinions. There is absolutely nothing wrong with that. If this did not happen due to stubbornness, ego or I know best attitude then it would be worth worrying about. 

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Platinum pulled back below the breakout level and is retesting this now. If you take into account the MA crosses in early March, the extreme in the Gold Platinum ratio, and the Palladium bubble (forcing manufacturers back to Platinum for catalytic converters) we have a good case for going long. Just needs a convincing close above 878.

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