Although platinum is a favourite of many active precious metals traders,  it is probably not on the trading radar for many of our readers. If you are one of those traders whose interested in exploring different opportunities,  I reckon platinum is a commodity that provides plenty of opportunities

Like the other precious metals it is non- corrosive, rare and beautiful.  These qualities make it attractive as a long term store of value. However, industrial use, especially in auto exhaust systems accounts for more than half the total demand for platinum. This compares to gold where industrial demand makes up only 10%. This has resulted in the platinum price being more volatile than gold in recent years as trend swings have been amplified by the big moves in world industrial production and motor vehicle sales.

From a trader's point of view, this extra volatility creates opportunities. I thought the head and shoulders pattern on the chart below was worth drawing to readers' attention as we head into the Greek elections this weekend

Platinum is likely to respond positively to any "risk on session" that may follow a market friendly result in Sunday's Greek election.

The advantage of technical setups in this situation is that they can provide a logical risk: reward framework to trading the news event i.e. a relatively close stop if news goes the wrong way but a good pay off ratio if it works. This is especially so if the set up triggers before the news event.

A standard entry approach to the head and shoulders pattern is to buy on a confirmed break above the neck line. Many traders would apply a price filter, placing their stop entry say about $10 above the neck line to cut down the risk of getting caught in a false break of the resistance