 Good afternoon and welcome to the chart of the week video with me David Madden Today's date is Thursday the 16th of January 2020 and the time has just gone 1255 GMT and this week's chart of the week is platinum And if you take a look at the price action of the metal over the last 15 to 16 months We can see here that's been broadly been pushing higher and that rally is really stepped up stepped up in late 2019 and also into early 2020. In fact, the levels achieved today the high that achieved today were essentially At the highest level you've seen in nearly three years What we're currently trading around 10 34 1034 we haven't seen these levels since February 2017 So not too far away from three-year highs and the markets clearly in a bullish trend some of the reasons for this Positive moment positive overall feel-good factor of the US China trade story power outages in South Africa Which is a large producer of a platinum? But also what's going on in the palladium market? Platinum palladium often some often get lumped in together as both metals are used in the in the For diesel emissions in relation to catalytic converters and given the way things are going I've drive for great energy. No pun intended has really helped the palladium market and As play them as ratcheting higher in fact, it's yet another all-time high today We can also see a giving a nice leg up to platinum so One of the tenants of Dow theory is that the averages must confirm each other And I said to you what that means is if similar markets are moving in the same direction You can be more confident of that market move. So for example, we've seen palladium flat We've seen platinum is a multi-year high. Whereas palladium is it an all-time high. So it's clear I think in a full of sentiment is involved markets and therefore you can be more confident of the overall trend continuing So going back to platinum here. We can see we're currently at levels near last seen nearly three years ago We're currently trading around 1034 And 1034 if you press on higher from here, we could make you target this zone 1046 and if you go beyond that the next big cycle at the next big number to keep an eye out for maybe this is all here in around 1100 There's a report called the commitments of trend report which basically looks at the various different activity in the futures and options market through the derivatives market and the report shows that going into the end of 2019 The speculative section which is basically trader that hedge funds and the likes the number of speculative bets Long long trades on platinum futures going into the end of 2019 was at a record high On top of that and on the flip side bearish bets short future short positions from the speculators on Platinum at the end of 2019 was at the lowest level as in 2017. So It's quite clear that this is it's quite clear that that Speculators traders and hedge funds are quite bullish on platinum But I would see that the site warly signal because when the the record high of speculative long positions on Platinum could be nearly indication that we could be in for a bit of a near-term top We could be in for a bit of a mark correction just because the idea the logic is that if if Everybody who's very keen to have a long position in Platinum is already long who else is left to buy I'm not saying that I don't see our people have to find the market But it's not uncommon to see a market turn around Not long after it's announced that There is record Positions one way or another just because it can often be a sign that that market is overdone So if we do see a bit of a pullback or a correction in Platinum We could see support commit to play in this zone here around a thousand It's a big psychological number and but even if you go below that this is all down here down around 960 to 945 this area here We have seen some cuts our nation in those price metrics before so it could be of significance again And also lastly if we even if you have a very sizable correction We could see support commit to play at Fifty moving average this blue line here. We can see a particular metric acted as resistance Here on a support here support here resistance here and support along here So the metric is clearly you can have flipping between support and resistance in the last few years So it's possible the metric because it could be important in the near in the near term although there are no guarantees That's all for me this week in relation to the Platinum video. Thank you for listening and please tune in next week