ChartWatch Markets: Gold, silver, and now platinum, the bull run in precious metals plus the ASX ETFs to trade it

In today's edition of ChartWatch Markets, we'll be covering the technicals for:

1. Nasdaq Composite

2. Gold Futures (Front month, back-adjusted) COMEX

3. Silver Futures (Front month, back-adjusted) COMEX

4. Platinum Futures (Front month, back-adjusted) COMEX

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Nasdaq Composite Index

An interesting chart (click here for full size image)

Monday’s candle shows a smidge of excess supply lurking in the shadow of 22802. It’s a smidge because the upward pointing candle is small both on an absolute basis (approx. 0.5%) and relative to those in the recent past.

22802 is a credible point of supply in my opinion, based on the supply-side candles that caused its formation, and the subsequent pullback that pushed past the 22398 peak/point of demand.

We don’t want to see a growing proliferation of supply side candles up there, and we don’t want to see a lower peak to 22802.

But these are minor things in the context of the broader short and long term uptrends (both very solid ⬆️/⬆️), price action (still rising peaks and rising troughs 📈), and a broad predominance of demand-side candles (i.e., those with white bodies and or downward pointing shadows ⬜✅).

So, there’s really little to add here compared to previous analysis – which is a very good thing I assure you!

I cannot see anything in the Comp’s technicals to warrant a move away from my prevailing personal portfolio risk cap for US stocks of FRP (Full Risk Position = My personal allowable capital allocation limit for my investments in Australian stocks is 100%).

• Key levels: 22058-185 is the closest zone of demand, the price should not close below here if the demand-side is in control of the Comp's price; a close below the short term uptrend ribbon (presently 21935-22200) will nullify the short term uptrend = ⚠️

Gold Futures (Front month, back-adjusted) COMEX

Stop pixel waste! 🛑 (click here for full size image)

I’m going to do the next few very quickly…

Because if you know me, you know 2 things more than anything else:

1. I ALWAYS follow the trend 💯

2. I NEVER predict – it’s an abjectly futile pursuit – because I can’t tell the future 🔮🙅

So, based on Item 1, there’s absolutely nothing to do but continue to back gold’s perfect uptrend. Perfect trends, perfect price action, perfect candles ✅✅✅.

And based on Item 2, there’s nothing more to add: See Item 1.

I know many who read this would prefer I gave you an exact date and price the gold bull market will end... But those would be foolishly wasted pixels indeed! 👎

✅✅✅ = I prefer to stay the course here (i.e., FRP).

Key levels: 3749.7 is the closest zone of demand, the price should not close below here if the demand-side is in control of gold's price; a close below the short term uptrend ribbon (presently 3650-3715) will nullify the short term uptrend = ⚠️

Silver Futures (Front month, back-adjusted) COMEX

Ticking off the milestones ✅ (click here for full size image)

Talking about perfect trends, price action and candles… silver is another picture of unanimous demand-side control 💯.

The supply-side is equally complicit – they don’t want to let go – and that’s forcing the demand-side to bid higher and higher prices to entice them out.

Silver Futures (Front month, back-adjusted) COMEX monthly chart

Where silver differs from gold, is in the fact that it's not yet trading at all time highs – but it is ticking off some pretty big milestones… Feb 2012’s 45.86 has been consumed, with Aug 2011’s 52.77 the next major point of supply on the list.

Points of supply that historic should always be taken with a pinch of salt, as really the only people still obsessed with them are technical analysts! Not me though – a potential point of supply is purely hypothetical until we have some price action to tell us the demand-supply environment is indeed respecting it.

The way silver is moving, we could have an answer on just how significant 52.77 is very soon!

Ditto gold here.

✅✅✅ = I prefer to stay the course here (i.e., FRP).

Key levels: 43.88 is the closest zone of demand, the price should not close below here if the demand-side is in control of gold's price; a close below the short term uptrend ribbon (presently 42.36-43.55) will nullify the short term uptrend = ⚠️

Platinum Futures (Front month, back-adjusted) COMEX

What's better than gold and silver? (click here for full size image)

No doubt you’re already aware that platinum is on the move – probably because it’s being increasingly touted as the next silver/gold in chatrooms and across the worst elements of financial social media.

It the best elements of financial social media too – because coincidentally, I covered it and palladium in last week’s ChartWatch *LIVE* Webinar! 😉

The trends, price action, and candles are similarly strong for platinum compared to gold and silver, but it’s more like silver than gold in terms of overhead points of supply to contend with.

Platinum Futures (Front month, back-adjusted) COMEX monthly chart

Compared to gold and silver, platinum’s chart is either more “just getting started” or “laggard for a very good reason”. The first prospect is tantalising to say the least, with the next major overhead zone of supply likely around 2000-2200.

The second creates some nagging uncertainty… perhaps that’s too strong a word (feeling if you will…). It’s just that in my experience, laggards lag for good reason. They’re also often the first to reverse course when the fervour driving the main show(s) begins to wane.

But, that last paragraph is not technicals, its gut feeling and I’ll leave it there: For now the platinum chart is a picture of excess demand, and therefore it warrants a FRP view.

I’ll let you investigate the ASX listed ETFs that service these views in your own time, but I do note that ChartWatch ASX Scans has Featured (i.e., highest conviction) the following on a regular basis for many months now:

• Global X Physical Silver ETF (ASX: ETPMAG)

• Global X Physical Platinum ETF (ASX: ETPMPT)

• Global X Physical Gold ETF (ASX: GOLD)

• Global X Physical Precious Metals Basket ETF (ASX: ETPMPM)

• Vaneck Gold Miners ETF (ASX: GDX)

• BetaShares Global Gold Miners Hedged ETF (ASX: MNRS)