Platinum trends March 4th, 2011

Post date: Mar 5, 2011 1:10:13 AM

Considering that it is the most precious of all the metals, platinum certainly turns up in some unusual places. It is actually more commonly found nestling near a car’s engine in the form of a catalytic converter than adorning the ring fingers of Highlands Ranch Colorado House wives.

There is nothing grubby about its recent price performance for the past few year,in fact the metal has risen 150 per cent from its low of late 2008 and is within 20 per cent of its all-time high at $2,309/oz. Even though world industrial demand has fallen with the world economy Platinum still remains a strategic rare earth metal as well as a precious metal.

The prospects of it regaining that peak look good if you interpret the charts. In spite of its strong uptrend, platinum has yet to register the sort of extremely overbought readings on its longer-term momentum indicators that it typically would have done were a major top forming. One of the reason for this could be the lack of EFT has are inflating the prices of gold and silver thought the GLD EFT and the SIL

In order to get back to the 2008 highs, it will first need to break through obstacles at $1,953 and $2,117. Ultimately, a new record of $2,653 could be formed.

Traders and tactical investors could seek to go long on platinum when the price pulls back to its 13-week exponential moving average – currently $1,780 – and then bounces

ProShares Ultra Silver (ETF) (NYSE: AGQ) jumped 7.62% in the regular trading session, and it added 0.59% in the after hours. AGQ had a volume of 1.59M traded shares today.

ProShares Ultra DJ-UBS Crude Oil (NYSE: UCO) spiked 5.26% on Friday as crude oil continued its rally. Crude oil jumped close to $105 today, and UCO closed the trading session at $56.46.

Global X Silver Miners (NYSE: SIL) gained 2.98%, and in the mining space, Silver Wheaton Corp. (NYSE: SLW ) added 2.84%. Pan American Silver Corp. ) (NASDAQ: PAAS) gained 2.86%, and closed at $39.55.

Direxion Daily Real Estate Bear 3X (ETF) (NYSE: DRV) gained 2.82%, as First Industrial Realty Trust, Inc. (NYSE: FR) dropped 4.04%. Vornado Realty Trust (NYSE: VNO) fell 1.83%, and it closed at $88.31.