Platinum weekly uptrend opportunity based On 1.00 Lot Calculation:
- Platinum is mostly used in catalytic convertors by car industry to reduce harmful gas emission, while tightening regulation is forcing auto makers to put more of Platinum into each vehicle, which in turn could keep demand outlook positive.
- EVENT: CHIP SHORTAGES FOR THE AUTO INDUSTRY SOON TO COME TO AN END, PUSHING CAR MANUFACTURERS TO PURCHASE (STOCK UP) MORE PLATINUM AND PALLADIUM NOW. Platinum and Palladium prices fell in 2021 due to expectations that chip shortages could cause lower car production rate, and therefore lower demand for the metals as they are heavily used by car manufacturers. Some analysts, however, believe that the chip shortage saga could end in 2022 and therefore some car manufacturers are now stocking up more Platinum and Palladium while still cheaper so to better prepare for eventual increase in car production rate.
- CHINA IS THE LARGEST PLATINUM AND PALLADIUM CONSUMER IN THE WORLD WHICH COVERS ONE THIRD OF GLOBAL AUTOMOTIVE PRODUCTION: Recent data showed that the Chinese economy has continued to recover along with its car industry, which is one of the largest consumers of Palladium and Platinum. China reported 2021 GDP growth rate of 8.1%. That being said, the demand for Platinum may rise, which could support Platinum prices. Overall sales in the world's biggest car market rose 3.8% year-on-year with total sales for 2021 to 26.28 million. Production and sales are expected to be better in 2022 than last year on the prospect that issues such as chip shortage and high prices of raw materials ease.
- PLATINUM FINDS USE IN EXPANDING ELECTRIC VEHICLE MARKETS (HYDROGEN FUEL CELL ELECTRIC VEHICLES). As the world moves from fossil fuels to zero-carbon energy, Platinum is also expected to rise in demand as it finds a crucial role in transforming hydrogen into electricity with hydrogen fuel cell technology, which is used by the electric vehicle markets to make green car engines.
- ANALYST OPINION (UBS): UBS sees platinum prices rising to $1,150 per ounce as the global chip shortage leads to a significant restocking of cars. They also see substitution of platinum for palladium in autocatalysts doubling year on year to 300,000 ounces in 2022.
Platinum, January 20, 2022
Current Price: 1040
|
Platinum |
Weekly |
|
Trend direction |
|
|
1200 |
|
|
1150 |
|
|
1110 |
|
|
980 |
|
|
965 |
|
|
950 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
Platinum |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
16,000.00 |
11,000.00 |
7,000.00 |
-6,000.00 |
-7,500.00 |
-9,000.00 |
|
Profit or loss in €** |
14,091.58 |
9,687.96 |
6,165.07 |
-5,284.34 |
-6,605.43 |
-7,926.51 |
|
Profit or loss in £** |
11,741.40 |
8,072.21 |
5,136.86 |
-4,403.02 |
-5,503.78 |
-6,604.54 |
|
Profit or loss in C$** |
19,987.52 |
13,741.42 |
8,744.54 |
-7,495.32 |
-9,369.15 |
-11,242.98 |
* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 08:50 (GMT) 20/01/2022
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 details