There are plenty of articles about gold and silver. Can't miss 'em. But how about metals such as rhodium, platinum and palladium? Not so common.
Let's look at the charts of palladium. Palladium has many of the same uses as platinum and is one-fifth the atomic weight. Years ago palladium used to trade at one-fifth the price of platinum but that relationship is history.
In this daily Point and Figure chart of the "continuous contract" palladium futures Point and Figure chart, below, we can see a potential upside target in the $2,961 area.
In this weekly Point and Figure chart of the continuous futures contract of palladium, below, we see a robust target of $3,648.
Trading a leveraged instrument may not be your thing so let's look at the Aberdeen Standard Physical Palladium Shares ETF with the symbol ( PALL) .
In the daily bar chart of PALL, below, we can see that prices have broken out on the upside from a six-to seven-month consolidation pattern. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line.
Trading volume increased in the middle of March and the On-Balance-Volume (OBV) line broke out on the upside of its sideways pattern. The Moving Average Convergence Divergence (MACD) oscillator hugged the zero line for several months before recently turning upward.
In the weekly bar chart of PALL, below, we went back five years to show the longer-term uptrend. Prices are poised to retest their high in the $270 area. The slope of the 40-week moving average line is bullish.
The weekly MACD oscillator just turned up to a fresh outright buy signal.
In this long-term weekly bar chart of PALL, below, we went back to 2010 to show the long multi-year base pattern around $75. Prices hesitated around $150 a while, which is a double from the base level. $300 is a four fold rise from the base and $375 would be a five fold markup. Precious metals would suggest these price targets are conservative. A ten-fold rise would be $750.
Bottom-line strategy: Sometimes the most rewarding strategies are found away from all the shouting. Palladium could be one of these opportunities.
