Trading long, or short-term purchases of Palladium

06 September 2022 358
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The other day, palladium approached the round support level of 2000 one more time.

This resulted in the “harami” pattern, which, so far, needs to be confirmed. Despite pattern having no obvious benefit in market forecasting, it is worth paying attention. So that a trend reversal is probable.

If today’s trading closes above 2025, the pattern will be confirmed. Therefore, the metal might rise to 2150 and above.

The Stochastic lines bear record to the mentioned facts driven to exit the oversold zone and cross, signaling a growth resumption.

Nornickel analysts expect palladium to trade near $2,000/oz by the end of 2022, but the increase to $2,300 - 2,500/oz can’t be excluded. The explanation for this forecast is quite simple: the fall in the metal demand from the automotive industry partially offsets the decline in palladium production in South Africa. Risks of supply issues will contribute to greater market volatility.

The prospects for metal growth are preserved, so there is a possibility to enter the long.

Entry options:

1. Buy at the current price with the following targets:

Take Profit 1 = 2150,

Take Profit 2 = 2300,

Stop Loss just below 1950.


2. Buy / add position at the trades’ opening on Thursday, September 8 - one of the best days of palladium growth.

The targets are the same:

Take Profit 1 = 2150

Take Profit 2 = 2300.

Or exit the market at Thursday's close.

Stop Loss below 1950.


3. Buy / add positions on Open Friday, September 9 - the best day of the week for metal growth.


Take Profit 1 = 2150.

Take Profit 2 = 2300.

Or exit at Friday's close.

Stop Loss below 1950.


Pay attention to the spread and money management rules!


Risk disclosure!

Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.

This content is for informational purposes only and is not intended to be investing advice.

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