понедельник, 14 ноября 2016 г.

PLATINUM TODAY – Prices retesting mid-October support

Short Term:
Medium Term:
Long Term:
Resistances:
R1 904 Recent DTL
R2 969 20 DMA
R3 983 40 DMA
R4 1025 Oct peak
R5 1038 August peak
R6 1090 High (May)
R7 1106 July 2015 high
R8 1144 UTL Dec 3/Apr 5 low
R9 1120 Apr 2015 lows
R10 1176-92 Late 2014 low/Apr-May high
R11 1163 DTL (Feb ’13/Jul ’14 highs)
Support:
S1 1144 UTL Dec 3/Apr 5 low
S2 1076 50% retracement Jun>Aug rally
S3 1048 100 DMA
S4 1045 UTL Nov 2015/Jun lows
S5 1016 200 DMA
S6 983 40 DMA
S7 969 20 DMA
S8 957 61.8% retracement Jan>Aug rally
S9 951 50% Fibo Jan-May
S10 945-947 Jul/Aug 2015 lows
S11 929 Support/resistance jul/aug 2015 Feb-Apr 2016
S12 811 Low so far
Stochastics:Bearish
Legend:
Fibo = Fibonacci retracement level
BB = Bollinger band
RL = Resistance line
SL = Support line
UTL = Up trend line
H&S = Head-and-shoulder pattern

Technical Comment

Analysis

  • Platinum is retesting support around $930 per oz established by the mid-October lows.
  • Some dip-buying interest has emerged below $940 per oz, as implied by longer lower shadows on the daily candlestick chart.
  • The stochastics remains bearish although the fast line has flattened out, suggesting that bearish selling pressure is fading.
  • Still, sentiment remains negative after the 55 DMA crossed below the long-term 200 DMA last week.
  • A break below current support would target a test of $880-900 per oz while the 20 and 40 DMAs will provide scaled-up resistance at $969 and $983 per oz respectively.

Macro factors

Lonmin reported sales of 735,747 platinum oz in the year to September 30, 2016, exceeding the sales guidance of 700,000 platinum oz. It attributed this to its smelter clean-up and metal released from improved processing technology. The company gave sales guidance of 650,000-680,000 platinum oz for financial 2017.
 
Chinese passenger vehicle sales continue to record strong grow, rising 20.3% year-on-year in October, according to the latest figures from CAAM (China Association of Automobile Manufacturers). Sales totalled 19.1 million vehicles in the first ten months, up 15.4% on January-October 2015. There could be a steep drop in Chinese growth in 2017 because the tax incentive on small-engine vehicles is set to expire at the end of the year.
 
US auto sales fell an estimated 4.4% in October, based on provisional estimates. Despite increased discounts and the trend toward larger vehicle types such as pick-up trucks and SUVs, sales overall were down 0.2% year-on-year in the first ten months of 2016. But passenger vehicle sales in Europe were up 8% in January-September.

Diesel vehicle sales face increasing pressure following various emissions scandals. According to Automotive News Europe, the market share of diesel cars in Europe might sink below 10% by 2030 from 52% at present. Carmaker Renault recently suggested diesels could disappear from most of its European car range.

ETF holdings total 2.36 million oz compared with 2.22 million oz at the end of September after buying interest returned late in October, with holdings jumping by 104,400 oz or 4.4% over October – this was the largest monthly increase since July 2015. But the fact they have fallen around 55,000 oz in the year to date does little to signal a bullish stance among investors.

The net length among Nymex funds/CTAs stands at 20,098 contracts, down from a peak of 55,949 contracts at the start of August. The latest CoT data will be published today due to the US Veterans day holiday on Friday.

The global platinum market will record a 520,000-oz deficit in 2016, according to the latest Platinum Investment Council forecast – deeper than the 455,000-oz deficit it forecast in May. Total supply is now seen falling 2% to 7.73 million oz – the WPIC lowered its expectations for recycling levels due to subdued autocatalyst and jewellery scrap sales. It also sees demand edging up to 8.25 million oz – firmer jewellery and investment demand will offset slower demand from industrial applications, owing to slower usage from the petrochemical sector. Demand for autocatalysts is seen slowing marginally – falling market share for diesel vehicles in Europe will negate overall growth in vehicle sales globally.

Conclusion

Bearish speculative sentiment has pressured platinum back to around $930 per oz, which was the mid-October support area. Dip-buying interest is providing support for now but whether the support is sufficiently strong will determine whether prices extend to fresh low or if a short-covering rebound is triggered.

All trades or trading strategies mentioned in the report are hypothetical, for illustration only and do not constitute trading recommendations.

The post PLATINUM TODAY – Prices retesting mid-October support appeared first on The Bullion Desk.



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