Platinum moves downwards, Palladium still looks up – TDS

Massive selling activity could hit the tapes in Platinum, TDS senior commodity strategist Daniel Ghali notes, TDS senior commodity strategist Daniel Ghali notes.

Platinum and Palladium are under a massive selling program

“Current price action is consistent with a massive selling program, as Commodity Trading Advisors (CTAs) sell nearly -45% of the algos' max size.”

“This increases conviction in our view that Platinum could have more to lose than Palladium, with our advanced positioning analytics still pointing to upside asymmetry in positioning risks for the latter, given discretionary traders also likely still hold a substantial net short position.”

“With our real-time gauge of commodity demand sentiment still plummeting, a tactical relative value play appears to be an efficient expression of this view.”