Platinum the Strongest of the Metals (7/11/06)

Platinum

Buy October platinum on any pull backs, maintain the protective sell stop just below the June correction low on the all-session chart at 1103.20. The market closed at 1243.70. Consider adding to long positions if October platinum breaks out above the contract high of 1340.00. Platinum has now made higher highs and higher lows on the weekly chart for three consecutive weeks. Platinum is the strongest metal based on comparative strength. In percentage terms, platinum's decline off of the contract high was less than that of gold, silver, and copper and it has retraced a greater percentage of the decline than gold, silver, and copper.

When a commodity has broken into new ground there is no chartist resistance to find a top. The economic factors that caused this breakout to occur is a long term happening. so right now the market is digesting the rise and another round of new high is on the way by this fall.
Happy investing.

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Assigned to category: commodities | precious metals
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