Palladium Being Rescued By The 50smaPrice has been doing well since breaking through the previous all-time high at $1,615
on 20th September 2019. Price rallied nicely, following the cup & handle pattern, until it
reached a high of $1,823 on 30th October 2019.
A pullback, which was to be expected, came down and even dropped 122 points in 2 days.
Day traders may have been scared off but as trend followers, we have kept our stops wide
enough to allow for this type of move without getting prematurely stopped out.
Right now, the 50 simple moving average is saving price from falling any lower and price appears
to be climbing up this sma.
There are two main potential outcomes going forward. Either price will head up and break
and close above the current high at $1,823. The other outcome is that price may come down
to find support at the previous all-time high at $1,615. Right now we are just managing our
investments in Palladium as there is no reason to exit just yet.
Palladium tends to endure deep pullbacks so we can expect a bumpy ride along the way up.
As long as you are managing your trades correctly then you should be able to ride the
trend all the way until the trend ends.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
