Three commodities are foundational to human life: food, energy, and water. And they are closely inte...
Palladium Getting a Bit Shinier
12/10/2012 6:00 am EST
Although not as sexy as its more shiny brethren-gold, silver and platinum-this metal is nevertheless on a tear since a widely read report forecast a supply shortage into 2013. The staff at ProfitTimes makes the case for why palladium is now at a critical point.
Below is a chart of palladium from the bottom of late 2008 until Friday. I added Fibonacci retracement levels, as well as Fibonacci Fan lines. We can clearly see why price is struggling with the $700 right now, as there is both the 76.40% retracement level from the bottom in 2008 to the top in 2011, AND the 50% retracement level from the top in 2011 to the bottom of late 2011. We can see that this $700 level has acted as both support and resistance during the last two years.
Below is a 4H chart of palladium, showing once again that Fibonacci is clearly at work.
Please note the negative divergence between price and MACD on a 4H basis.
This could mean a short-term top is in, and that palladium could retrace over the next couple of days.
If the top was set Thursday, The first target would be $670, followed by $655, and $642.50ish (all are Fibonacci levels).
$670 is very likely on a daily basis if price doesn't break through $700, due to the fact that the middle Bollinger Band (or 20-day moving average) is currently at $665 and rising (meaning it will soon reach this $670 level), where it should provide (at least some) support.
If $700 would break to the upside, then I expect a lot of technical buyers to step into the market, as we would then have a higher high in price.
By the staff at ProfitTimes
Related Articles on COMMODITIES
Gold is a central theme of our portfolio and there are plenty of quality precious metals stocks in o...
Unlike previous market downturns, say 2008 for example, the economy remains strong and all preferred...
I’ve been in this business for more than two decades. During that time, I’ve been incred...