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Platinum

Market Opportunities - 26/08/2021

26 August, 2021

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Platinum weekly uptrend opportunity based On 1.00 Lot Calculation:

  • Platinum is mostly used in catalytic converters by the car industry to reduce harmful gas emission. Tightening regulation is forcing auto makers to put more Platinum into each vehicle, which in turn could keep the demand outlook positive.
  • CHINA - LARGEST PLATINUM AND PALLADIUM CONSUMER IN THE WORLD reported this week no new local Covid-19 cases for the first time since July, according to its National Health Commission (NHC). Decreased number of cases can accelerate China economic recovery and as a consequence lead to an increase in Platinum demand.
  • PRICE ACTION: Platinum has lost around 14% since mid July trading currently near the lowest level since the beginning of the year.
  • Platinum has been trading at a significant discount to palladium and gold. With palladium, platinum shares usage in catalytic converters, while with gold it partially shares the safe haven role on the market.
  • There is a wide expectation that the Federal Reserve will postpone tapering of its bond buying program to the later of the year which can push the price of precious metal up.
  • ANALYST OPINION (UBS): The bank cut platinum mine supply estimate for 2021 by about 140,000 ounces, leading to a deficit of around 185,000 ounces and marking a third straight year of undersupply. According to UBS, Platinum may hit $1,300 per ounce this year.
  • The World Platinum Investment Council (WPIC) expects the platinum market to be more under supplied this year than it had estimated as the economic recovery fuels a surge in demand from industry, forecasting a shortfall of 158,000 ounces. This would mark the third straight annual shortfall.

Platinum, August 26, 2021
Current Price: 983.50

PLATINUM

Weekly

Trend direction

UP

Resistance 3

1,135.00

Resistance 2

1,091.00

Resistance 1

1,053.00

Support 1

914.00

Support 2

888.00

Support 3

849.00

Example of calculation based on weekly trend direction for 1.00 Lot*

PLATINUM

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

15,150.00

10,750.00

6,950.00

-6,950.00

-9,550.00

-13,450.00

Profit or loss in €**

12,883.97

9,142.09

5,910.47

-5,910.47

-8,121.58

-11,438.24

Profit or loss in £**

11,031.02

7,827.29

5,060.43

-5,060.43

-6,953.55

-9,793.21

Profit or loss in C$**

19,137.18

13,579.19

8,779.10

-8,779.10

-12,063.37

-16,989.77

* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 10:20 (GMT+1) 26/08/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail

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