Thursday, April 03, 2008

Watch Platinum

If you're trading gold or silver, it's always a good to watch the entire group of metals for divergences at turning points.

Above is a daily chart of Platinum, Palladium, Silver and Gold. As you can see they all trend together but if you look closely you can find divergences. For example: On March 17th both gold and silver made a new swing high but platinum and palladium did not. A few days later the metals all sold off sharply. Now we have silver and gold taking out last month's low but platinum and palladium did not. In my opinion this is bullish and I think we may see a rally in the metals in the next few days.

Which metal am I the most bullish on? It would have to be Platinum. Platinum has been the leader of the metals and that's why if you are trading gold and silver you should also be watching platinum.


Elaine said...

Interesting patterns. Is there a way to play platinum - ETF or stock? Would a metals ETF be almost as good? To play a possible metals rally, which stocks or ETFs would be the best? I'm considering buying calls so would like something relatively liquid. Thanks!

Kevin said...

Hi Elaine,

The best way to play this is platinum futures or options.

There is a platinum ETF but it's traded on the London Stock Exchange (LSE) which doesn't do us any good.

Anonymous said...

Hi, Great idea to track Platinum along with gold / silver. I'll add it to my own charts.

Narayana said...

try PAL or SWC... they both mine Platinum.


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