Palladium futures in the December contract is currently trading at 1,629 after settling last Friday at 1,600 continuing its bullish momentum hitting an all-time high once again as strong demand continues to fuel prices higher.
I was looking at a bullish position a couple of days back but was not executed as I am currently sitting on the sidelines, however, if you are long a futures contract I would stay long as I think higher prices are ahead and if you've been following any of my previous blogs you understand I think prices could hit the 2,000 level. Palladium is trading far above its 20 and 100-day moving average as this is the strongest precious metal as I do not have any recommendations out of this sector at the current time.
If you are long a futures contract I would continue to place the stop loss under the 10-day low standing at 1,518 as an exit strategy, however, the chart structure will improve next weeks trade therefore the monetary risk will be lowered as I see no reason to be short as that would be counter-trend trading which is very dangerous over the course of time.
CHART STRUCTURE: POOR
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