High-flying Sylvania Platinum shares still full of optimism

Reflecting the change in fortunes for the metal itself would be even better news for Sylvania.

Sylvania Platinum (LSE:SLP) 

When asked to review Sylvania Platinum (LSE:SLP), it occurred to me that we very rarely pay attention to this, one of the Earth's rarest metals. Spanish miners once regarded it as an unwanted impurity in the silver they were mining, a mistake unlikely to be made today. There's something happening with the price of platinum and we'll deal with that first.

Presently trading around the $950 mark, Platinum looks very capable of heading to $1,030 next. If exceeded, we expect some stutters around our secondary calculation of $1,060. The price needs to reverse below $930 to provoke hysterics against these calculations.

If Sylvania Platinum share price intends to reflect the change in fortunes for the metal itself, price growth now above 39.5p suggests coming recovery to an initial 43.8p.

If exceeded, our secondary calculates at a longer term (or later that day!) 49p.

Achieving 49p is liable to be almost game changing for the longer term. If the share price manages to close a session above 45.5p, it enters the hallowed lands of "the higher high".

To us, this means we require extrapolate price movement from 2013 to calculate the force driving it for the future. While this sounds like complex mumbo jumbo, it's fairly simple logic which implies, essentially, positive market conditions allow a long term attempt at 61p before we run out of numbers.

At present, the share needs below 32p before we'd feel our optimism is about to be trashed.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.