CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Platinum

Market Opportunities - 11/08/2022

11 August, 2022

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 USE AND MARKET SHARE:

  • Platinum is mostly used in catalytic convertors (circa 40%) 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. Platinum has also found use in the jewelry sector (circa 32%). Industrial use of Platinum takes up to 21%. Platinum has been also used as an inflation hedge investment (3%) through the years, and as such remains vulnerable to changing global interest rates and global inflation.
  • MARKET SHARE (PRODUCERS): South Africa is the largest producer holding 70.0% of the markets, while Russia is the second largest with 12- 13% of the markets. Zimbabwe is third on the list with 8.2% of the global production.
  • MARKET SHARE (CONSUMERS): China is the largest Platinum consumer with 28%, while Europe is second in line with 25%. North America (USA) takes up to 20%, while Japan stands at 15%.
  • EXPECTATIONS FOR PLATINUM IN 2022 COMPARED TO 2021 (SOURCE: WORLD PLATINUM INVESTMENT COUNCIL): Demand for Platinum in the Auto industry may go up by 11%, while industrial demand may rise by 27%. Demand in the jewelry sector may increase by 5%. Investment demand may go up 29% in 2022 compared to 2021.

RUSSIA- UKRAINE WAR AND RUSSIA AGAINST THE WEST ECONOMIC WAR

  • RUSSIA- UKRAINE WAR: President Vladimir Putin announced an attack on Ukraine on February 24, days after he recognized two breakaway regions of Russia’s neighbor as independent. Attacks are occurring in Kyiv, Odessa, Mariupol and other locations in Ukraine. Russia faced tough sanctions by the EU and the US and other allies, which brought the country to the brink of sovereign debt default. Russia is the second largest Platinum producer in the world providing around 12% of global supply, only behind South Africa which provides 70% of the global supply.
  • BREAKING NEWS (APRIL 8): THE LARGEST PALLADIUM AND PLATINUM MARKET IN THE WORLD SUSPENDS DELIVERY OF RUSSIAN REFINED PALLADIUM AND PLATINUM. This could limit the access to the Palladium and Platinum market, which has been already under pressure due to Russia- Ukraine war and it could result in higher Palladium and Platinum prices. Russia is the second largest Platinum producer in the world providing around 12% of global supply and the large Palladium producer in the world providing around 45% of global supply

ANALYSIS AND EVENTS:

  • SHANGHAI REOPENING FROM COVID-19 LOCKDOWNS. Shanghai is a large finance and industrial center in China, which hosts a lot of auto factories that have reopened for operation on June 1, 2022. Therefore, what was lost in terms of demand over the past weeks, will be soon recovered.
  • EXPECTED SWITCH FROM PALLADIUM TO PLATINUM: The markets expect the auto industry, especially in China, to continue to switch from Palladium to Platinum at an accelerated rate in 2022. This could increase demand for Platinum, and therefore its price might be expected to rise.
  • 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. Bank of America forecasts 1338 in 2022. Commerzbank forecasts $1050 by the end of the year.
  • TECHINCAL ANALYSIS: PLATINUM SEES STRONG SUPPORT AT $900. Since November 2020, Platinum has found strong support at $900. It had tested the level of 900 or below only four times, and every time would manage to return above $900.
  • RECENT PRICE ACTIONS: PLATINUM HAS HAD A DOWNARD CORRECTION OF AROUND 23% OVER THE PAST SIX MONTHS. Platinum fell to 806 earlier in July, its lowest price since June, 2020.

Platinum, August 11, 2022
Current Price: 950

Platinum

Weekly

Trend direction

UP

Resistance 3

1150

Resistance 2

1070

Resistance 1

1010

Support 1

895

Support 2

870

Support 3

840

Example of calculation base on weekly trend direction for 1.00 Lot1

Platinum

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

20,000.00

12,000.00

6,000.00

-5,500.00

-8,000.00

-11,000.00

Profit or loss in €2

19,368.02

11,620.81

5,810.41

-5,326.21

-7,747.21

-10,652.41

Profit or loss in £2

16,350.56

9,810.33

4,905.17

-4,496.40

-6,540.22

-8,992.81

Profit or loss in C$2

25,524.60

15,314.76

7,657.38

-7,019.27

-10,209.84

-14,038.53

1. 1.00 lot is equivalent of 100 units

2. Calculations for exchange rate used as of 09:00 (GMT+1) 11/08/2022

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 detail
Share It With Your Network
PLATINUM Chart
Update Time: -
Highest
Lowest
1M 5M H D W
Prices are loading..
Ready for trading?Start Now
Close

Be aware of the holiday trading hours for:

  • Tuesday, 04 October 2022 for the Chung Yeung Day Holiday in the Hong Kong market.
Instrument 04.10.2022. 05.10.2022.
ALL FOREX Regular Regular
Indices 04.10.2022. 05.10.2022.
Hong Kong 50 Closed Regular

Please note: In case of low liquidity in a specific instrument, Fortrade may widen the spreads or even close the instrument for trading. Notifications will be issued regarding any such changes to the trading schedule.

  • The above times may be subject to change.
  • The dates preceding and following this holiday have the regular trading schedule.
  • All times are GMT.

Risk Warning and Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. 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. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses. Conducting transactions can lead to the loss of part or all of the initial investment. Before commencing operations, make sure you understand the risks involved and have sufficient skills to invest. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs and margin FX are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose. Be Aware: You can lose all, but not more than the balance of your Trading Account. You do not own, or have any rights to, the underlying assets. Past performance is no guarantee of future performance. This information is intended to be general in nature and is not financial product advice. Any advice contained on this website or provided to you by Fort Securities Australia Pty Ltd is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. We encourage you to obtain independent financial advice and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to determine if this product is suitable for you before deciding to enter into or obtain any financial products issued by us. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.
CFDs are complex and highly speculative instruments, which come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your invested capital. Be Aware: You can lose all, but not more than the balance of your Trading Account. 77% of retail investor accounts lose money when trading CFDs with this provider. These products may not be suitable for all clients, therefore ensure, that you understand the risks and seek independent advice. Should you proceed with investment in CFDs on virtual currencies, please note, that the values are highly volatile and may result in a significant loss for a short period of time. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. 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. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Trading foreign exchange and/or Contracts for Differences (CFDs) on a margin carries a high level of risk, and may not be suitable for all investors. CFDs are complex products, which are highly speculative and very risky, and investing in such products may result is losing all or most of your invested capital.