Signs of extreme upside asymmetry are emerging in Platinum, TDS Senior Commodity Strategist Daniel Ghali notes.

Reversal in prices can spark CTA buying activity

“Even a small reversal in prices can now spark massive CTA buying activity in Platinum markets, with CTAs potentially adding up to 60% of their max size over the coming week in this scenario. A flat tape won't be enough to spark a whipsaw in CTA positioning, suggesting that another cohort will have to lift prices first.”

“Discretionary traders are net short, but position sizes remain modest, suggesting little support from this cohort on the horizon. However, a substantial increase in SGE Platinum volumes amid slumping prices suggests dip buyers have emerged in physical markets.”