{"id":163427,"date":"2020-01-16T17:56:56","date_gmt":"2020-01-16T22:56:56","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163427"},"modified":"2020-01-16T17:56:56","modified_gmt":"2020-01-16T22:56:56","slug":"platinum-breaks-1000-on-big-rally-and-what-is-next","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/platinum-breaks-1000-on-big-rally-and-what-is-next\/","title":{"rendered":"Platinum Breaks $1000 On Big Rally And What is Next"},"content":{"rendered":"
January 16, 2020<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Certain precious metals, Gold, Silver, and Platinum, have shown moderate upside price trending over the past 20+ months while Rhodium and Palladium have skyrocketed higher.\u00a0 These more precious metals, Rhodium and Palladium, have many industrial and consumer uses.\u00a0 Rhodium is used in electronics and plating and Palladium is used in a variety of consumer products from Automobiles to Medical Devices.<\/p>\n

Still, the rally in Rhodium (over 300%) and Palladium (over 70%) over the past 12 months has been more than impressive.\u00a0 Whey are we not seeing a similar rally in Gold, Silver, and Platinum yet?<\/p>\n

The reality is that we are seeing a similar price rally in Rhodium and Platinum as we saw in 2004~2008 \u2013 just prior to the Global Credit Crisis.\u00a0 Take a look at the composite chart below.<\/p>\n

There are few interesting components of these charts that show how precious metals reacted throughout the 1997~2000 rally and the 2005~2008 rally \u2013 both of these events set up a bubble burst reversion event.<\/p>\n

_\u00a0 Rhodium rallied extensively in 2005 through 2008 \u2013 peaking at levels near $10,000 just before the credit crisis bubble burst.<\/p>

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_\u00a0 Palladium rallied a moderate amount in 2005 through 2007, then sold off as the bubble burst.\u00a0 Then rallied to over $800 after fear set into the markets.<\/p>\n

_\u00a0 Platinum began a rally in early 2000 that propelled it to a peak in 2007 (just before the peak in the US stock market).\u00a0 Since then wild price rotation and a moderate reversion to levels near $1000 have set up a massive basing pattern.<\/p>\n

_\u00a0 Gold, like Platinum, began an incredible upside price rally in early 2000 and continued to rally till the peak in 2010<\/a><\/p>\n

_\u00a0 Palladium, being an industrial use metal and being deployed in a variety of advanced technology, would tend to rally as demand for technology products and consumer products associated with Palladium components are in very high demand.\u00a0 Much like what happened in 1998~2000.<\/p>\n

_\u00a0 Rhodium\u2019s rally is very likely related to manufacturing and institutional demand across the globe.<\/p>\n

_\u00a0 Platinum and Gold may be set up for an incredible upside price rally should Rhodium and Palladium extend their rallies even further.<\/p>\n

_\u00a0 We find it incredibly fascinating that Rhodium rallied nearly 1000% from 2004 to 2009 \u2013 just before the peak in the global stock markets and the start of the Global Credit Crisis.<\/p>\n

_\u00a0 We also find it incredibly interesting that Palladium rallied over 1000% from 1995 to 1999 \u2013 just before the DOT COM bubble burst.<\/p>\n

_\u00a0 We believe the rallies in Rhodium and Palladium are early warning signs that can\u2019t be overlooked by skilled traders\/investors.<\/p>\n

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The recent upside breakout of Platinum falls into the same category as the late 1998 Platinum rally as the valuations of the DOT COM rally began to overextend.\u00a0 We believe this shift into high-value risk protection began to take place as investor\u2019s fear levels increased in the late 1990s.\u00a0 As we suggested recently \u2013 a shifting of the undercurrents in the markets.<\/p>\n

The current rally above $1000 in Platinum suggests a new upside price rally is taking place after an extensive basing pattern (2015 to now).\u00a0 Should Platinum rally above $1200 per ounce, a new technical bullish trend will be confirmed.<\/p>\n

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Our proprietary Fibonacci price modeling system is suggesting price targets on the Weekly chart of $1090, $1130 and $1215.\u00a0 Pay very close attention to this rally in Platinum as it could become the catalyst for a much bigger move in many of the major precious metals.\u00a0 The Platinum rally in 1997 began an upward price advance of nearly 600% over the next 10 years.\u00a0 A similar move today would put Platinum near $6000~$7000 \u2013 Gold would be near $3200+ should this happen.<\/p>\n

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Our belief is that the rally in Platinum will continue as valuations in the global markets push higher.\u00a0 Fear is creeping back into the markets as investors are expecting some type of price reversion event.\u00a0 We believe the current setup is very similar to a mix of the events we\u2019ve highlighted in the composite metals chart, above.\u00a0 A mix of what happened in 1995~1997 and a mix of what happened in 2005~2007.\u00a0 Platinum and Gold are acting very similar to what happened in 1995~1997.\u00a0 Palladium and Rhodium are a mix of 1995~1997 and 2005~2007.\u00a0 Overall, the rallies in Rhodium and Palladium are strangely similar to \u201cpeak everything\u201d bubbles.<\/p>\n

Watch how this plays out over the next 12+ months.\u00a0 Gold and Silver should begin to move higher<\/a> as Platinum extends the rally.\u00a0 Fear is starting to re-enter the markets as traders and investors extend their belief that a reversion event is setting up.<\/p>\n

Join my\u00a0Wealth Building Newsletter<\/strong>\u00a0if you like what you read here and ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own.<\/p>\n

Chris Vermeulen
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/a><\/p>\n

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.\u00a0 Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Certain precious metals, Gold, Silver, and Platinum, have shown moderate upside price trending over the past 20+ months while Rhodium and Palladium have skyrocketed higher.\u00a0 These more precious metals, Rhodium and Palladium, have many industrial and consumer uses.\u00a0 Rhodium is used in electronics and plating and Palladium is used in a variety of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-163427","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163427","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=163427"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163427\/revisions"}],"predecessor-version":[{"id":163428,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163427\/revisions\/163428"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=163427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=163427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=163427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}