XPDUSD trade ideas
Palladium Rescued At $2,500!Palladium is proving to be resilient as it is finding strength after a sharp decline last week.
The $2,500 round number has come to the rescue for the buyers and it is acting as a strong
level of support for price.
In January 2020, this round number was acting as resistance and forced price to pull back
and now that resistance level has turned to support.
The fear of the coronavirus spreading caused wide speculation in the markets last week
and Palladium fell by over 350 points.
Now that price has found support at $2,500 we are starting to see strength back in this commodity
and we just need more momentum to see price push its way above the current all-time high.
A break and close above the current all-time high at $2,875, formed on the 27th February 2020,
will confirm a continuation of the uptrend.
Bear in mind that we have the $3,000 psychological round number not too far above that high.
This may cause further resistance for price if it can reach these heights.
Our multiple positions are currently still in profit and we are looking to compound once
we see another breakout.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
"The Tesla of commodities" - And it's not gold, iron ore or platThank you China – and no… not for the Coronavirus
I’m talking about Palladium…
The main reason why Palladium is flying and will continue to do so, is all thanks to regulations taking place in China.
We are seeing major industrial demand driven by the expectations that there'll be stricter environmental regulations and standards in China.
In fact, they expect production to trail by 1.9 million ounces of palladium this year. That’s an insane 800,000 ounces more than last year.
For you to understand why there is an increase in demand for palladium, we need to look at what the main industrial use for this precious metal is.
Did you know, two-thirds, or 67%, of all palladium is consumed each and every year from the manufacturing of automobile catalytic converters.
What’s important to note is that the palladium - used in the catalytic converter - helps control the harmful emissions and pollution from fuel-powered vehicle car exhausts…
And now, with Chinese and European vehicles needing to meet the (China 6 and Euro 6d) legislation we can expect a rise in the global average loadings on gasoline-catalysts.
This increase in demand, will send the palladium price even higher.
Vivek Dhar, an analyst at Commonwealth Bank of Australia summed it up nicely:
"Demand is being driven by environmental regulations, particularly in China, which has increased palladium use in vehicles and should offset any recent weakness in car sales"
Right, so we know the big reason why Palladium should continue rallying, but wait until you see this chart…
This half-crescent pattern will take Palladium to the moon
Looking at the above daily Palladium chart, you can see it’s been moving in a strong uptrend from a low price of $1,460 up to the previous high at $2,530.
During this time, it has formed a strong upward (buying) momentum pattern which I call the “Half Crescent” formation (shaded grey).
This is when the price moves up at a steep and round angle, which creates a formation that looks like the crescent shape similar to the moon.
And now that the price has broken out and above the six-month ceiling level (pink line), tells me that palladium is going to continue to sky rocket.
To calculate the next target of Palladium we'll basically use my breakout High-Low calculation…
This is a target calculation where I take the price difference between the most recent high ($2,530) and the most recent low ($1,460 and I add it to the most recent high price.
Price Target =
= (High - Low) + High
= ($2,530 - $1,460) + $2,530
= $3,600
This means, we will be able to take full advantage of the palladium price rise while it rallies another $1.070…
It is going to be a lot of fun to ride Palladium downBlow-off top pattern, divergence on RSI and MACD all this screams "sell me big" :-)
I am expecting it to fall 50% down very quickly. None needs it at the current price while consumption is going to shrink world-wide.
XPDUSD correction follows.XPDUSD correction follows. Continue analysis. In my opinion, the analysis remains the same. The fractal structure is retained. I updated because a wave sequence rule set was starting to build up. And this is nothing more than a wave shift. The movement of the stock accumulation (sideways) wave shifted upwards. The point of the rule set is that the width of the range remains. Therefore, the lower part of the accumulation bin moves up to 2343usd. The range width may justify starting a short position.
Palladium big shortTell me how Palladium price is going down for the next few months :) The big short. If it goes above the channel, then ok the scam continues
Palladium's Recent Trend Up 26%!The current 26% trend has now matched the trend from May to July 2019 in terms of percentage rise.
It still has some way to go before it matches the 38% rise we saw from December 2019 to January 2020.
Palladium has been forming a nice strong uptrend with clean pullbacks and smooth periods of
consolidation. We are currently experiencing a pullback which could easily turn into consolidation
but nothing to be of concern just yet.
If we see a deep pullback then the next obvious level of support is the $2,500 round number
which previously acted as a resistance zone. Price may not even come this low from where
it is now and may just find support around where it lies now.
What we are looking for next is a break and close of the current all-time high at $2,842 from
19th February 2020. Even if price breaks above this high, we have the $3,000 round number
not too far above which may act as strong resistance as well.
Our compounds will take place once price travels above $3,000.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
XPDUSD (Palladium) correction begins.XPDUSD (Palladium) correction begins. If you look at the W1 timeframe, you can see that the palladium has done a very accurate 2x fractal copy for 10 years. (I am absolutely fascinated by such charts. We assume that the future is invisible, everything moves at random. There is a very regular engineering precision curve here. But let's return to the analysis. My assumption is that the exchange will continue to do 2x fractal copying. This means that the construction of a nearly 20% correction channel is now underway. The target price is 2180usd. Note Automated trading is now over 60% in stock exchange trading. As a technical engineer myself, I use analytics systems that are also used by stock market robots with artificial intelligence.
Palladium BullflagPalladium has formed a bullflag on the 4H chart, this is looking to extend the current bull run that has produced large returns.
Palladium. What's happening?Recently Palladium has been going through a region of potential conflict.
The yellow channel lines represent the region that Palladium was trending between during the 2016 and 2017 period.
The green channel represents the region that Palladium has trending between since August 2018.
The important 1.618 Fibonacci line generated from the peak on 18th Jan 2018 and Low on 22 Jan 2018 has also been added.
The rising green channel form August 2018, generated as a result of the undersuplied demand for Palladium, met its first hurdle at the start of January, the 1.618 fibonacci. Added to this, the price of Palladium reached this location at the same time that the lower of the yellow channel crossed the Fibonacci line. This was an important barrier to break and could have been the region that Palladium could have reversed. But the fundamentals were too strong. After a short periof of riding the dual lines Palladium finally broke through and shot up to the upper of the green channel where it settled back to the now support lines.
At this point Palladium was either going to continue following the green channel or revert to the slower rising yellow channel. Initially Palladium bounced slightly off the upper yellow/green channel combination before breaking through on the second attempt.
Having broken through this line, Palladium is now likely to use the upper yellow channel (not breaking below 1500) as a support line and then continue along the green channel.
Calling Tops In a Bullish MarketAs a rule of thumb you shouldn't call tops or bottoms, react to change. However ima give it my best shot for fun. A bullish divergence can be seen for Palladium on the RSI, which has lead to a large bull run comparable to the initial bull run seen, will this come crashing down like the fractal predicts? I'm no Nostradamus but it would make a hell of a trendline. Return to the mean channel is likely, eventually.
XPDUSDbeen watching this for some time now i will expect another big rise soon once we have corrected pushing price out of that zone that is marked
you can buy in this zone but expect some pull backs within it!!
risk correctly
