Palladium Price Strikes a New All-Time High
London (Oct 29) Palladium rose above $ 1,800 per ounce and became the most valuable precious metal. Palladium futures reached a maximum of $ 1,809.50 in the trading session on Monday.
The precious metal is not only used to reduce polluting emissions from automobiles. But it is also used in electronics, dentistry, and jewelry.
Analysts point out that the supply that comes mainly from Russia and South Africa is not able to respond to the growing demand. This expanding interest is because various governments are increasing vehicle emission standards.
In Europe, consumers are choosing to buy cars that run on gasoline, that use palladium, instead of buying diesel cars, those that use platinum. This change is mainly because diesel vehicle manufacturers adulterated the tests and the results of the emission tests.
Technical Overview
The palladium on its weekly chart exposes the price running in a wave ((5)) labeled in red. The completion of the five-wave sequence should give way to the origin of a corrective structure of the same degree. However, the bullish path still is active.
Palladium
Studying the daily chart, we notice the price action shows a bullish five-waves sequence of minor degree labeled in black. At the same time, this part of the bullish cycle moves inside a wave (3) of intermediate degree, labeled in blue.
Palladium
The Elliott wave theory suggests that the precious metal could reach a new high of the intermediate degree sequence.
Reading from the institutional activity, on the latest CFTC report, speculative positioning unveils an increase of 7.32% (WoW) in short positions. Traders in the sell-side increased their shorts from 21.28% to 22.41% on last week.
On the long-side, speculative bull trades increased their longs in a modest 0.99% (WoW). This accumulation drives institutional traders to hold 77.59% of long positions.
Palladium
In consequence, the growth in the sell-side could provide a warning signal of the exhaustion of the bullish bias.
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