Indicators of maximum upside asymmetry are enjoying out in Platinum markets, TDS Senior Commodity Strategist Daniel Ghali notes.
CTAs to purchase 5% of their max measurement this session
“We highlighted that even a small reversal in costs can now spark huge CTA shopping for exercise in Platinum markets over the approaching week, and immediately’s worth motion ought to assist to spark the primary such CTA shopping for program. We count on CTAs to purchase 5% of their max measurement this session, which represents solely a fraction of the entire +60% they might plausibly purchase over the approaching periods in an uptape.”
“At present ranges, even in a flat tape, CTAs can be set to fully cowl their shorts over the approaching week. This set-up for algo flows bodes very nicely for added upside on the horizon, reinforcing our view that Platinum costs have now already printed their native lows.”
“A considerable enhance in SGE Platinum volumes amid the latest droop additional suggests dip consumers have emerged in bodily markets, according to our view.”