Nidalas

Palladium, a desirable pullback on a very strong trend

TVC:PALLADIUM   CFDs on Palladium (US$ / OZ)
This noble metal has been stealing the show of its bigger brothers and sisters ever since the risk growth of a market correction started showing at the end of 2018.
Market makers keep playing range-bound cat & mouse with smaller investors still stuck on the "use gold to hedge" multi millennium motto while less popular markets sneak by

However, after a strong bull, and considering this specific market is not yet euphoria-bound in my opinion due to the lack of media exposure, a pull back would be desirable for the health of this up trend -which begins to look like a bubble-
And we have achieved very good levels for this to happen.

Consider hedging long positions around and above the red area for better prices using tools to monitor market makers movements.
For better results, use context of other noble metals and stocks market situations
Unlike the NASDAQ (and overall US markets) ideas, we are not trying to build strong shorts, but merely manage risk on long positions (for now)


Just like all my published ideas, this is not financial advisement, trade at your own risk
Comment: Sell pressure as expected

Buy pressure looks still strong, buyers are still here so we might have a smaller correction than expected. Keep your eyes open as we might bounce before the target

Trade closed: target reached
Trade closed manually: After the previous hedging (~25%) and rebound buy which was planned at 1300$, i'm booking profits and reducing exposure in the current 2300-2450$, and planning to buy lower; ideally around the 1750$ area or below
I don't think the bubble is over, and almost 3000$ would be a better target to book profits, but I am starting to get mixed signals on the risk front that become difficult to ignore.
Trade closed: target reached: Exactly as planned, booked profits around 2400 (you can see how the market hesitated too), and bubble resumed up to "almost 3000$" : 2825$ to be more accurate.
Just what we wanted to finish selling the positions at the initial target.
And then things took a turn for the worse, directly to our target of 1750$

You could say it was the recent epidemics news all you want, but mathematics once again warned us long before the so called news did

This idea is closed; Thank you for reading.

Comments

1400 here we come !
Reply
Nidalas CarlosOfOz
@CarlosOfOz, Thank you,
That is a strong possibility indeed, and getting stronger by the minute
+1 Reply