Technical Analysis: Metals

0

0

Spot PLATINUM

Tue, Jul 22 2008, 09:49 GMT
by Nicole Elliott

Mizuho Corporate Bank


Comment: Bizarre price action so far this year as we consolidate under $2200 per ounce in a sort of ‘triangle’. This much needed pause after Q1 2008’s fireworks has brought prices back on to the ‘trendline’ that started the rally in 2007 and has allowed the Ichimoku ‘cloud’ to catch up. Platinum has give up 61% of this year’s gains but is certainly not ‘cheap’ yet. We feel there is a better than even chance that it will base this summer between $1800 and $1750, allowing it to trade back up to $2150 by Q4 2008. The question will be whether or not it will keep pace with the US dollar weakness we continue to predict. Our current view is that wholesale commodity prices will lag gains in the strongest currencies and provide a poor ‘currency hedge’.

Strategy: Buy$1875/$1800; stop below $1700. Add to longs on a weekly close above $1900 for the psychological $2000 area, taking profits around $2100/$2150.


Archive

Mizuho Corporate Bank  | 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210
http://www.mizuho-cb.co.uk | Nicole.Elliot@mhcb.co.uk

Legal disclaimer and risk disclosure

The information contained in this page is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This page has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.


Interested in forex trading? forex brokerage firms!


Forex Capital Markets, LLC (FXCM)
Contact the broker/FDM
Open a demo account
ACM Advanced Currency Markets SA
Contact the broker/FDM
Open a demo account
ODL Securities Inc
Contact the broker/FDM
Open a demo account
Advanced Markets
Contact the broker/FDM
Open a demo account
Capital Market Services, L.L.C.
Contact the broker/FDM
Open a demo account

FXstreet.com will give you a 3 months membership as soon as minimum rebates have been generated (€150 for private trader/ €300 for corporate trader)

[Read Premium full description]

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

©2008 "FXstreet.com. The Forex Market" All Rights Reserved.