Two month ago, I talked about Palladium and how it was at all-time highs. Because price was already at its avg. measured move, I decided to use fibonacci extensions to identify a target price and selected the 138% extension, which gave a $1465 target.
Palladium futures suffered Wednesday from their sharpest one-day dollar decline in more than 19 years, losing nearly $100 an ounce for the session to mark a significant retreat from a recent string of record settlements tied to an expected surge in auto-industry demand.
“The tighter emissions standards in Europe and elsewhere has led to part of the [recent] increase, but the Russia export restrictions have been the real driver,” Jeff Wright, executive vice president of GoldMining Inc., told MarketWatch.
So far, Wright said he believe’s the metal “has had a normal correction, as demand while up is not dramatically up or changed.” However, more electric vehicles “will taper demand for palladium and long term, I am in lithium over palladium or platinum.”
Not only did price hit my target, but exceeded it by about $100
So where is price headed next, lets go to the charts to find out?
A Fibonacci retracement is a term used in technical analysis that refers to areas of support or resistance. Fibonacci retracement levels use horizontal lines to indicate where possible support and resistance levels are. Each level is associated with a percentage.
The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8% and 78.6%. While not officially a Fibonacci ratio, 50% is also used.
The indicator is useful because it can be drawn between any two significant price points, such as a high and a low, and then the indicator will create the levels between those two points.
The chart suggest to go long at the monthly demand at $1150 which lines up with the 38% retracement.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.