Palladium: Triggered; Strong Candle Structure; Catch-Up With Basket

Research Notes For 09 to 13 June > https://www.unum.capital/post/r0913june

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The chart below is an update to our previous post (26 May) in which we highlighted the (1) re-test of the 200-day SMA and (2) The $1042 level as the trigger for a potential 'momentum run'.

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Precious Post (26 May: Palladium: Retesting The 200d; Triggers Above $1042)

A flat 200-day moving average is often accompanied by a price that is rangebound i.e. struggling to find direction. Whilst it can be frustrating in the short term, traders should remain alert to the potential for strength (or weakness) on the lower time frames which may be indicative of renewed buying (or selling) interest. In the case of Palladium, the commodity has rebound from below the 200-day SMA to above, and in recent sessions has unwind in from ultra short term overbought to re-test the 200-day SMA. If we start to see strength on the lower time frame and a break above the $1042 level, this could be a trigger for further upside, with the medium term target being the prior swing highs of $1252.

Lester Davids

Senior Investment Analyst: Unum Capital