Technical Analysis Platinum Futures
About Platinum
Platinum futures are traded on several commodity exchanges. These include:The Chicago Mercantile Exchange (CME), which trades supply contracts with the ticker PL in the amount of 50 troy ounces. Platinum is quoted there in US dollars.
Tokyo Commodity Exchange (TOCOM), where platinum trades under the numerical ticker 13. On the Asian platform, the platinum rate is calculated in yen per gram, and the volume of the delivery contract is 500 grams.
The London Metal Exchange (LME), where platinum prices are fixed twice a day, once in the morning starting at 09:45 and once in the afternoon starting at 14:00 (London time).
Platinum is one of the noble metals with useful properties - it is practically not susceptible to aggressive environments, but at the same time it can act as a catalyst in chemical reactions.
Platinum is one of the rarest metals; it is mined several times less than gold - only about 6 million ounces.
The main states involved in the extraction of this precious metal are the Republic of South Africa, which accounts for more than half of the total volume (about 70%), 110-155 tons per year. At the same time, the platinum mined here is the purest. Other countries are forced not only to mine the precious metal, but to create it in the process of mining copper and nickel.
In Zimbabwe, more than 10-15 tons per year are mined by the largest local companies Anglo American Platinum and Impala Platinum Holdings.
Canada produces about 5-9 tons.
The US produces about 4-6 tons of platinum per year, while deposits in Alaska have a downward trend.
The price of platinum today is lower than that of gold, but there is still significant demand for it.
- African Rainbow Minerals
- Anglo American Platinum
- Aquarius Platinum
- Cuniptau Mines
- Impala Platinum
- JCI Limited
- Lonmin
- Nornickel
- North American Palladium
- Northam Platinum
- Stillwater Mining Company
- Wesizwe Platinum
Reports from companies in the leading countries on the extraction and export of platinum can talk about supply and demand, which affect the cost. For example, when PL production declines in South Africa, the value of platinum rises.
The main consumption of this rare metal falls on industry, and more precisely, on the automotive industry (more than 40%), where it is used as a catalyst in exhaust systems.
Also, platinum is used to make chemically resistant dishes, powerful permanent magnets, durable electrical contacts, heating elements and components of microwave technology.
In the chemical industry, the metal is used in the production of hydrogen peroxide, nitric acid, silicones, perchlorates and other substances. In addition, platinum catalysts are used in refineries, including for the production of gasoline. Also, this noble metal is used in the aircraft industry to coat the elements of jet turbines, which makes it possible to increase their service life in aggressive environments.
Platinum is of great importance in medicine, including in the treatment of oncological diseases, as well as in dentistry. An important direction in the use of metal is the manufacture of jewelry. In addition, commemorative coins are still being made from it.
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Submitted by admin on Mon, 11/07/2022 - 14:32
Elliott Wave Forecast: Platinum (PL) Searching for Bottom
Platinum (PL) continues to trade sideways and the metal is in the process of forming an important low before the next major bullish cycle starts. The Federal Reserve has aggressively hiked rates multiple times, creating a sideways to lower movement in the commodity sectors. There’s however no doubt that the longer term outlook of commodities is bullish. At this stage, there’s enough number of swing to call the daily and monthly correction completed. However, we still need more data and evidence to call the correction completed. In the meantime, we still give a possibility for the metal to extend lower until the market says otherwise. Below is the update of the Elliott Wave chart in Platinum.
Platinum Monthly Elliott Wave Chart
Monthly Elliott Wave Chart of Platinum (PL) above shows that the rally from January 1992 low ended with wave ((I)) at 2308.8 as an impulse Elliott Wave structure. Pullback in wave ((II)) ended at 562 as a zigzag structure.
The metal has resumed higher in wave ((III)). Up from wave ((II)), wave (I) ended at 1348.2, and wave (II) pullback is in progress to correct the rally from wave ((II)) before the metal resumes higher again. It has enough number of swing to end wave (II), but we need more data and confirmation to call the correction completed. A close above the descending trend line from wave ((I)) should the first sign that wave (II) has ended and the metal ready to extend higher. From the structure, it looks like 2023 would be a bullish market for the metal.
Platinum Daily Elliott Wave Chart
Daily Elliott Wave Chart for Platinum above shows that the metal is correcting cycle from 3.17.2020 low in wave (II). Internal subdivision of wave (II) is unfolding as a zigzag Elliott wave structure. Down from wave (I), wave a ended at 886, and rally in wave b ended at 1197.
Wave c is in progress as 5 waves impulse structure. Down from wave b, wave ((1)) ended at 796.8. Wave ((2)) is in progress to correct cycle from 3.9.2022 high before the metal turns lower again in wave ((3)) of c. If the metal manages to close above the descending trend line from wave (I), we can consider wave (II) completed at 796.8.