Trade Impala Platinum: Approach, Key Levels & Probabilities

Research Notes For 30 June to 04 July > https://www.unum.capital/post/r3004july

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Let's break down those two potential buy re-entry levels for Impala Platinum based on the technical analysis.

Both of these levels represent classic technical areas where traders look to enter a position during a pullback within an established uptrend.

1. The Unfilled Gap at 13457c

Significance: Gaps on a price chart often act like magnets, drawing the price back to "fill" them. An unfilled gap below the current price represents a strong potential support level. The logic is that the sharp move that created the gap left behind a pocket of unfilled buy orders. A return to this level provides an opportunity for those buyers to enter and for new buyers to establish a position at a clearly defined technical point.

• Strategy: For a re-entry, this is a very precise level. A trader would look for the price to pull back and test the top of this gap (around 13457c). A successful test, where the price touches or slightly enters the gap and then bounces, would be a strong bullish signal. This aligns perfectly with the "Short-Term Playbook" in the infographic, where buying a pullback to a defined support level is a key strategy.

2. At or Just Below the Rising 8-Week EMA

Significance: The 8-week Exponential Moving Average (EMA) is a key indicator for the medium-term trend. A rising 8-week EMA confirms that the stock is in a healthy uptrend. In strong trends, institutional traders and algorithms often use this moving average as a primary area to add to or initiate positions during pullbacks. Buying "at or just below" it anticipates that the price might briefly dip under the EMA to shake out weaker hands before the core trend resumes.

Strategy: Unlike the static price of the gap, the 8-week EMA is dynamic and moves with the price. A trader using this strategy would wait for the price to retreat to meet this rising line. The re-entry here is based on faith in the underlying trend's strength. This approach is consistent with the infographic's "Core Thesis" which highlights being in a "constructive bullish trend."

Conclusion

These are two different but complementary concepts:

• The Gap is a static price level of support.

• The 8-Week EMA is a dynamic trend-following level of support.

The highest-probability buy re-entry scenario would be a confluence of these two levels. If the rising 8-week EMA were to move up to intersect with the unfilled gap around 13457c, that price zone would become an exceptionally strong area of support. A pullback to such a level would likely attract significant buying interest from both price-level traders and trend-following traders, making it a powerful potential launchpad for the next move higher.

Lester Davids

Senior Investment Analyst: Unum Capital