Palladium is Still My Favorite Chart in the World
- Posted by JC Parets
- on May 28th, 2014
As you guys know, I look at a lot of charts. But coming into 2014, it was Palladium, of all things, that I liked the most. I called this one “My Favorite Chart in the World.” Now as we approach the midway point for the year, everything that we’ve seen continues to suggest that higher prices are still coming for the metal.
So far year-to-date Palladium prices are up 17% while the other metals struggle. I want to reiterate a few points as we continue to see Palladium soar to multi-year highs. The first thing is the relative strength that it’s shown versus the other metals. Here is a 2-year chart comparing Palladium to Gold and Silver. Big difference to say the least:
The second thing that I think is worth pointing out is this year’s breakout from that huge base. As they say, the bigger the base the higher in space. Here we’re looking at a weekly bar chart showing the impressive breakout from this multi-year consolidation:
The measured move target based on the size of the pattern is about $1050-1100 based on the size of the base ($300-350). We take that number and add it to the breakout level around 750 to achieve our target.
My outlook has not changed for this market since we first brought it up in January. In fact, everything we’ve seen confirms our original bullish thesis. I’m going to remain in the ‘buy any and all weakness’ in this space. I think it continues to outperform the other metals as well as Commodities as an asset class. Most importantly, it’s left US Stocks in the dust and I think we see more of that.
You still don’t hear much about the Palladium market. But I get the feeling that once we take out the 2011 highs, you’ll start to hear a lot more chatter…..
REGISTER HERE for more information on how to access all of the precious metals charts on a weekly basis.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) in 2008 and now actively manages money incorporating Technical Analysis and Behavioral Finance into his practice More
- About Those Failed Breakouts in Dow and S&P
- Global Macro Webinar: Thurs October 2, 2014
- Micro-caps Approach Important Support
- My Favorite Currency Chart in the World
- Crude Oil Approaches Very Important Support
- S&P500 At Historic Highs Relative to Gold Miner ETF GDX
- Small-Caps & Mid-Caps Break 2009 Uptrend Line
- BNN Video: Small-Caps, Silver & Dollar Index
- I Get Them Wrong Too!
- Small-Caps Hit 2-year Lows vs Large Caps
Archive by Year