New Bull Starting in Platinum?
Updated
A few interesting points about XPTUSD and why it might be time to look at long positions:
1. 7-Year cycle in XPTUSD is bottoming out right now.
2. We are seeing a backtest of the initial breakout similar to what happened in 2000-2001
3. XPTUSD production is going to see major cutbacks moving forward from South Africa
4. Above ground stocks are winding down which has put extreme pressure on prices for the last 4 years
5. Should the DYX fail to breakout decisively over 102 before the end of 2016, then the ZARUSD could strengthen.
1. 7-Year cycle in XPTUSD is bottoming out right now.
2. We are seeing a backtest of the initial breakout similar to what happened in 2000-2001
3. XPTUSD production is going to see major cutbacks moving forward from South Africa
4. Above ground stocks are winding down which has put extreme pressure on prices for the last 4 years
5. Should the DYX fail to breakout decisively over 102 before the end of 2016, then the ZARUSD could strengthen.
Note
As there was a fairly massive rejection and price reversal at $950 today, we should keep in mind that the possibility of the bear market in platinum could continue. Should $900 level give way on a weekly closing basis, then lower prices are still possible. In addition, if the January lows of $810 are not able to hold up, then significantly lower targets would become apparent ($450-600 range).Note
Platinum closed out December over 900/oz. and also over the support platform as drawn in the trade idea. I would still like to see prices get back over 1000/oz. in Jan/Feb timeframe but so far prices are back over 950/oz. which is a positive start to the new year.
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