Platinum is a unique chemical element. Aside from precious properties and jewelry, which accounts for only one third of the consumption volumes, the main consumer of the metal is the automotive industry, where it is used in catalysts for exhaust gases. And considering that environmental standards are getting stricter, demand for it is going to increase even more.
Additionally, the unique properties of platinum are actively used in the oil and gas, chemical and electrical industries.
So, it is not a surprise that in the weekly chart, price pulled back 50% of its "post-pandemic" rally and hit $ 950.
Since there are three corrective waves (ABC), in which wave A represents the buying pressure last year and early this year, investors should take short positions up to the 50% Fibonacci retracement level from $ 950. Set stop loss at $ 700 and take profit on the breakdown of $ 1,350.
In the 4-hour daily timeframe, investors can rely on the buying pressure last week, from which quotes also rolled back by 50%.
There are also three corrective waves (ABC) in the chart, where wave A represents the buying pressure last week. But this time, investors should take long positions up to the 50% Fibonacci retracement level from $ 950. Set stop loss at $ 900 and take profit on the breakdown of $ 1,030 and $ 1,350.
These two trading ideas can be combined. After all, both are based on Price Action and Stop Hunting strategies.
Good luck and have a nice day!