The platinum market has risen a bit during the trading session here on Monday to test the 200-day EMA yet again.
Platinum
The platinum market has risen a bit during the trading session here on Monday to test the 200-day EMA yet again. I'm watching platinum because, quite frankly, it's easier to stomach than silver.
If we can break above the 200-day EMA on a daily close, I think that's a very positive sign, and it could have platinum looking to climb. I suspect at that point, you probably have silver doing the same thing. Keep in mind that the gold market has already led both of these markets higher, and now finds itself testing somewhat significant resistance.
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Nonetheless, we are in an area between the 200-day EMA and the 50-day EMA in the platinum market, and that sometimes can cause a bit of a squeeze. We did form a death cross and then subsequently went sideways for a month, and then rallied. So, it looks like we're trying to form a golden cross where the 50-day EMA breaks above the 200-day EMA. It's a longer-term bullish signal.
Moving Averages and Industrial Demand
Platinum, of course, is a little bit more about the automotive industry, but there's also serious demand when it comes to the electrification of the world and such. So, with that being said, I think platinum probably remains a buy-on-the-dip market at the moment. And I would say that's probably true with most metals. It's true with copper; it's probably true with silver and gold.
So, I like the idea of finding value or going long in this market if we can get some type of decisive close above the 200-day EMA. That doesn't mean that it's going to shoot straight up in the air, and quite frankly, in general, platinum tends to be a choppy market most days. But it does tend to trend over the longer term. It looks almost identical to the silver market. That shouldn't surprise you, considering it's basically half silver. So, with that being said, I look at this as a potential less volatile way to play a potential silver breakout.
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