Palladium Is On A Roll

Palladium Is On A Roll
January 12 16:58 2019

Palladium is widely used in three-way catalytic converters in car exhaust systems. Palladium is also used jewelry and in dental fillings and crowns.  Another common use for palladium is in multilayer ceramic capacitors. These are an important part of common electronics equipment such as cell phones, laptops, fax machines, etc. Palladium is also used in connector plating for a number of electronics.

If a US-China trade war deal can be reached, Palladium will likely increase in price from a Chinese plan to introduce policies to boost domestic spending on items such as autos and home appliances this year. 

Not only will this increase the consumption of Palladium in China, but emerging markets as well.

Palladium sister metal, platinum is now trading near a 10-year low, at about $820 an ounce, while palladium is near $1,325 an ounce.  Palladium has some features that make it more suitable for gasoline or hybrid cars, like better resistance to higher temperatures.  However, switching to platinum would take years. Palladium prices are evening trading higher than gold at this point, so how much higher can palladium go, lets go to the charts to find out?

When prices are at all time highs, it tough to determine the next target level. However, one can use measured moves and fibonacci extensions. Measured moves are forecasts of the upcoming price moves after a chart event, including completion of a pattern.

On the monthly chart, price has already hit the avg. measured move target.

Fibonacci extension tool, available on most trading platforms, can help establish profit targets or alert a trader to where potential trend reversal areas could develop. Common fibonacci extension levels are 138.1%, 161.8%, 261.8% and 423.6%. Based on the first fib extension, price has the potential to get to $1465.

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.

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About Article Author


I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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