Strong candle as of Friday's close. Took long position in anticipation of break higher. Net positioning is lean and elevated shorts should help Platinum in the near-term. A generally weaker USD after the recent rally will also be supportive of this move. The longer term range of 890/900 and 1000 is a reasonable strategy to trade.
Why we still favor a stronger USD
Potentially strong US labor market data after positive ADP report
Market (and Fed) underpricing inflation?
Still low and disappointing inflation in Europe making it difficult for ECB to start normalizing
Long EUR speculative positioning at record high
Deteriorating twin deficit in US priced in
Trading in its tightest trading range ever
Speculative long positioning deteriorating to a record low
Gold/Silver ratio heading into strong resistance
From a contrarian standpoint suggests a breakout attempt shouldn't be too far away
Looking for sustained break above $16.75
This view can also be implemented capital efficiently via long SLV call options
Attractive risk/reward after significant sector underperformance vs SPY
S/L below demand zone around 66
Increased confidence above 68.25 opening up room towards 50% retracement area
