We last looked at Palladium on April 8 and recommended that "Sometimes the most rewarding strategies are found away from all the shouting. Palladium could be one of these opportunities." Prices are at all-time highs. The probability of Palladium continuing to rise is dependent on the rise of the automotive industry.
In this daily bar chart of the continuous futures contract of Palladium (this chart links up the nearest active contract to create a chart that does not expire as futures normally do) below, we can see that prices have soared higher this month. Futures are in an uptrend and above the rising moving average lines. The On-Balance-Volume (OBV) is bullish and so is the Moving Average Convergence Divergence (MACD) oscillator is also bullish.
In this long-term continuous futures contract of Palladium, below, we can see a tremendous advance over the past three years. Going back five years is more impressive with prices going from below $600 in 2016 to nearly touching $3,000 now. No top in sight.
In this chart of ( PALL) , the Aberdeen Standard Physical Palladium Shares ETF, below, we can see that prices have continued to climb higher since our recommendation. Our favorite indicators are bullish.
In this long-term weekly chart of PALL, below, we can see an incredible advance from 2016. Notice the eight year base pattern.
In this daily Point and Figure chart of PALL, below, the software is projecting a potential price target in the $360 area.
Another investment idea in this space would be shares of Sibanye-Stillwater Ltd. ( SBSW) which mines palladium, platinum and rhodium. SBSW could see some sideways price action before renewed gains (chart below).
In this weekly Point and Figure chart of SBSW, below, we can see a $30 price target.
Bottom line strategy: The most interesting thing about metals like palladium and rhodium is that there are no substitutes and the time line for new supplies/increased mine production is years.
