Renowned TDS Senior Commodity Strategist Daniel Ghali has pointed out the presence of extreme upside asymmetry in Platinum markets. This observation has significant implications for investors looking to capitalize on potential price movements.
CTAs Expected to Buy 5% of Their Maximum Size in Current Session
Ghali predicts that a small reversal in prices could trigger a surge in buying activity from Commodity Trading Advisors (CTAs) in Platinum markets. In fact, he anticipates CTAs to purchase 5% of their maximum size during the current session, with the potential for further buying in subsequent sessions.
Even in a scenario of stagnant prices, CTAs are projected to fully cover their short positions over the next week. This sets the stage for algorithmic trading flows that could drive Platinum prices higher in the near future.
Furthermore, a notable increase in Shanghai Gold Exchange (SGE) Platinum volumes amidst a recent market downturn indicates a resurgence of interest from buyers seeking to capitalize on price dips.
Analysis:
The insights provided by Daniel Ghali highlight a favorable outlook for Platinum markets, with the potential for significant upside in the near term. Investors may consider positioning themselves to take advantage of the expected price movements, particularly as CTAs ramp up their buying activity.