Is Palladium Rally Driving Metals?
Chris Vermeulen | Apr 16, 2018 01:43PM ET
Many months ago we made an interesting call in palladium and alerted readers to this setup on January 24. This nearly perfect call included our future price expectations using our advanced ADL price modeling system. Today, we are refreshing that call with a new call that our price prediction has played out perfectly and has completed its pullback.
Last January, we identified this critical double top in palladium and warned our followers that a 4~6% price correction was about to unfold.
At that time, the chart below showed our predictive price analysis and warned that prices would retrace. This type of setup/move is a simple technical trade. In short, when price of an asset has had a substantial move and reaches a clear resistance level like this, you must expect sellers to step in and unload their position to lock in profits. This is what drives the price temporarily lower.
The next daily chart shows the upside price breakout that has recently caught our attention and is the reason we are alerting our followers to the upside potential of this move. We have been long the metals market for quite a while and this upside breakout in palladium may be the start of a massive upside move in the metals.
Our recent research shows that the precious metals markets may be setting up for a solid upside price rally on Syria and other recent news.
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