Setup Condition for Platinum (October 08 W2)
October/05/2008 14:52 Filed in: Commodity Monthly Analysis
There is a potential market setup that may develop in the next couple of weeks for PLATINUM:
Conditions:
-Commercials: moderate after having been long
-Sentiment: low < 20%
-Large Traders: moderately short
-Small Traders: low short < 20%
-Fundamental valuation: undervalued <20%
-Stochastic: oversold <20%
-Seasonal: neutral and uptrend to develop
-ADX: very high > 60%
Analysis:
-This is a metal commodity we need to keep an eye on. It lost $61,030 per contract since May 23, 2008. The ADX indicator still shows integrity on the downtrend but its high value indicates a trend reversal may be near. We need to wait for the ADX indicator to reach a maximum and initiate the reversal. This is a commodity to keep in the watch-list for the intermediate future. Depending on the general market and economic conditions it may be an opportunity to make a substantial amount of money per contract but we first need to way for the ADX and price reversal to enter. The current margin requirements are $2,160.00. At the moment, however, the COT data and ADX does not confirm it yet.
Conditions:
-Commercials: moderate after having been long
-Sentiment: low < 20%
-Large Traders: moderately short
-Small Traders: low short < 20%
-Fundamental valuation: undervalued <20%
-Stochastic: oversold <20%
-Seasonal: neutral and uptrend to develop
-ADX: very high > 60%
Analysis:
-This is a metal commodity we need to keep an eye on. It lost $61,030 per contract since May 23, 2008. The ADX indicator still shows integrity on the downtrend but its high value indicates a trend reversal may be near. We need to wait for the ADX indicator to reach a maximum and initiate the reversal. This is a commodity to keep in the watch-list for the intermediate future. Depending on the general market and economic conditions it may be an opportunity to make a substantial amount of money per contract but we first need to way for the ADX and price reversal to enter. The current margin requirements are $2,160.00. At the moment, however, the COT data and ADX does not confirm it yet.