Go Long Anglo American Platinum:
Based on the technical information on the chart above, the share price has broken above the resistance level at 36000c. The share price reached these levels towards the end of August this year and before this, the share price broke above the price in April this year and retraced below 36000c afterwards. Towards the end of January and the beginning of February, the share price struggled to close firmly above the level. In recent weeks, we have seen, both the platinum price and the Palladium price have been strengthening (which is the top two of the company’s main production).
The Palladium price has been performing well in recent weeks and as of yesterday, the price of the precious metal closed above $1000/Oz. Below is an estimate of the revenue that the company is anticipated to make, which is derived from external analysts that send their information to Bloomberg. Analysts have forecasted revenue of ZAR29.8B for the second half of the 2017 fiscal year. There is also 2.92 EPS (Earnings Per Share) still on the cards for the company, giving it a positive outlook for the remained of the fiscal year and the forecasted growth over 3 years. Additional information is the countries in which the company operates in, as well as the core of what the company produces.
Trade summary:
Long Anglo-American Platinum
Entry 36000c
Stop loss 33400c
Target price 40200c
Revenue Estimate
Platinum
Palladium
Remember... trade responsibly, your capital is at risk and trading can lead to capital losses.
Until next time, I wish you profitable trading.
All charts & information sourced: Bloomberg
