TECHNICAL ANALYSIS: Platinum stocks seen to hold more value in coming weeks | Fin24
 
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TECHNICAL ANALYSIS: Platinum stocks seen to hold more value in coming weeks

Apr 17 2019 08:32
Colin Abrams

The rand platinum price ultimately dominates how local platinum stocks will fare, and it’s good news that the rand platinum price has now broken out of a large basing chart pattern. Expect ongoing upside in platinum stocks as a result.

RAND PLATINUM PRICE – Bullish breakout

Recommendation: BUY

Current Trend: Short and med-term up. Long-term sideways.

Strategy: Buy (Newplat) at current levels or better.

Chart Setup: The rand platinum price has finally given an upside breakout of a 16-month large rounding bottom (as circled).  Note, the platinum stocks have been discounting this breakout for a while, but it’s still good news for platinum stocks.

(Daily chart)

Chart

Strategy Details: Buy the rand platinum price via Newplat, a locally listed ETF of the rand platinum price.

Target: Up to R14 100 on the rand platinum price as a minimum target, based on the rounding bottom. Ultimately up to line 2 at R16 490. On Newplat itself, this target is R141; and ultimately R162.50.  (It’s currently trading around R121).

Stop-loss: A close below R113.35 on Newplat.

  • Colin Abrams is an independent technical analyst. To subscribe to more recommendations by the author, or attend trading courses, please go to www.themarket.co.za

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

platinum  |  equities  |  rand  |  markets
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