The one and only commodity I am selling in May 2023!We’re looking at the weekly chart.
We can see palladium’s price has fallen since 2021 from $3,000 down to today at $1,424.
Then in 2022, palladium shot up to above $3,400, this has formed what’s known as a Descending Triangle.
This is where the price makes lower highs and bounces on the same floor level.
Now that the price has broken below the triangle, this tells me the sellers are winning and will continue to dominate the market.
This will bring down the price further. I expect the palladium’s price to drop to the 200MA (black line) and then further down to $880.
If this happens, this downside for the precious metal will ONLY be the beginning.
Considering all these factors, we need to brace for palladium’s next crash and at least try and profit from the fall.
FUNDAMENTALS:
Why Palladium’s demand is dropping
Experts from Norilsk Nickel, a major mining company, predict there could be only a small shortfall of 100,000 ounces.
This is less than what they thought in February when they expected a shortfall of 300,000 ounces.
This is mainly because the car industry is not recovering as quickly as they thought, so demand has not increased as expected.
Chip supply and the war in Ukraine have further slowed the car industries recovery.
And South African palladium producers have also contributed to this slowing as they have lowered their production goals and reduced their refining activities, largely due to loadshedding.
And this isn’t good for palladium and its price.
But as always I look to the charts for the overarching signal and this is what it’s telling me.
