Platinum weekly uptrend opportunity based On 1.00 Lot Calculation:
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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.
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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.
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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.
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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.
Platinum, March 16, 2022
Current Price: 1080
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Platinum |
Weekly |
|
Trend direction |
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|
1338 |
|
|
1200 |
|
|
1100 |
|
|
950 |
|
|
925 |
|
|
900 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Platinum |
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|
Pivot Points |
||||||
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Profit or loss in $ |
33,800.00 |
20,000.00 |
10,000.00 |
-5,000.00 |
-7,500.00 |
-10,000.00 |
|
Profit or loss in €2 |
30,727.27 |
18,181.82 |
9,090.91 |
-4,545.45 |
-6,818.18 |
-9,090.91 |
|
Profit or loss in £2 |
25,872.63 |
15,309.25 |
7,654.62 |
-3,827.31 |
-5,740.97 |
-7,654.62 |
|
Profit or loss in C$2 |
42,982.78 |
25,433.60 |
12,716.80 |
-6,358.40 |
-9,537.60 |
-12,716.80 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:30 (GMT) 16/03/2022
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail