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Trading Lessons

Platinum Price Cycles Predict Big Upside Move

Commodities / Platinum May 04, 2018 - 01:11 PM GMT

By: Chris_Vermeulen

Commodities

I wanted to take a moment to alert everyone to a price cycle setup that may turn out to be one of the most dramatic price moves we've seen since 2008. The metals markets have recently made some news by breaking to new recent price highs. This price move prompted a number of major firms to announce new bullish directional forecasts for gold with predictions of $2500 to $3000 price levels in the near future. These future price predictions led me to consider what it would take for metals to rally more than 30% from current levels – and the answer became clear to me.


A strengthening US dollar in combination with some new form of global debt or market crisis would result in a large portion of foreign capital investments transitioning into the US equity market and the metals markets. Gold is the primary indicator of this level of fear and should be watched as the leading metal representing any crisis event. Yet, platinum is proving to be the big opportunity for traders because of a number of reasons.

Platinum Chart

This chart shows what I believe are the primary Weekly price channels as well as my price cycle analysis (the Cyan-colored line). One can quickly see the cycle patterns rotating higher with price advances and lower with price declines. The current price decline is set to end right now (May 1st) and begin a new price advance which will likely result in price retesting the high channel near $96. This would be the first level of resistance and where I would expect price to stall before possibly advancing further.

Monthly Platinum futures

This second chart below is of Monthly Platinum futures showing the same advanced price cycle analysis as well as the congested price channels near the right edge of the chart. Traders should notice the price consolidation over the past year or so near historical price lows in addition to the price cycle analysis indicating that price should be declining over the past few months. I believe this price decline to near the $900 level will act as support for the Weekly cycle price advance and that once the price of Platinum breaks the $1040 level it could be advancing much higher. Intermediate price resistance can be found near $1200 and $1400, but beyond that $1800~1900 is the critical resistance level.

I think one of the most overlooked chart time frames is the monthly. Sure, it’s slow moving but man, the opportunities are fantastic. Last January I posted as similar trade setup to this Platinum article but it was a Palladium article sharing a swift 19% collapse in price, so don’t be fooled by monthly chart analysis!

In my opinion, the only thing we have to wait for to confirm this upside rally is a closing price breach of the $1040 level in Platinum. A closing price bar above this level will indicate a price breach of the trading channels (see the Weekly chart for red price channel area) and provide strong indications that the Monthly price cycles are accurate. This would confirm the potential for a much higher price swing with $1400 to $1800 becoming a real possibility later this year.

Capital will flow into the US equities markets and metals should there be any type of global debt issues, global stability issues, or war. Watch the leader, Gold, for continued signs of a bullish price advance and don't miss out on this tremendous opportunity unfolding in Platinum later this year. My analysis shows that Platinum could rally 60~100% over the next 12+ months.

You can receive my daily pre-market analysis, index, oil, and precious metals trades by joining my Wealth Building Newsletter.

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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