From the Desk of Ian Culley @IanCulley
Nobody is paying attention to platinum.
It’s easy to overlook while gold shines and silver rips. But during the last commodity supercycle, platinum traded at a premium to the famous shiny yellow rock (and still does regarding retail jewelry).
Platinum was a powerhouse!
Check out gold and platinum futures overlaid going back to the 1970s:
Both peaked within a month of each other in the early 1980s and experienced rip-roaring rallies during the 2000s.
These two markets trend together over longer time frames. If this is an actual bull run for precious metals and an honest-to-god commodity supercycle, platinum will follow gold’s lead.
In fact, it's breaking out of a multi-month base right now:
I like buying platinum futures on a daily close above 994.30.
Our initial target coincides with last year’s high, and the neckline of a potential multi-year head and shoulders pattern at approximately 1,140:
I expect significant selling pressure at those former highs. But once buyers absorb all the overhead supply, we can set our next upside objective for the 2021 peak of roughly 1,350.
The corresponding breakout level for the Physical Platinum Shares ETF $PPLT stands at 91:
A decisive close above the former resistance level triggers a buy signal with an initial target of 105 and a secondary objective of 122.
Of course, PPLT and platinum futures will likely trade at much higher levels. I’ll update our targets as the secular uptrend unfolds.
For now, precious metals have the investment community’s full attention.
Gold is printing new all-time highs, silver is ripping, and mining stocks are picking up the pace.
Don't disregard platinum. It's a heavy hitter.
Are you embracing the precious metal rally?
If not, why? What’s holding you back?
–Ian
COT Heatmap Highlights
- Commercial hedgers hit another three-year record-long position for the Swiss franc and Japanese yen.
- Commercials' net-short position for coffee could propel an extensive rally as buyers drive prices higher.
- Commercial short positioning reached a new three-year extreme for lean hogs.
Click here to download the All Star Charts COT Heatmap.
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