Palladium: Is The Bottom In? (w/ Tom Bruni)

TL;DR

Tom Bruni of allstarcharts.com suggests entering a long trade on palladium at current levels, with a stop loss at $1,330 and a target price of $1,625 over the next one to three months.

Transcript

Welcome to Real Vision's Trade Ideas. Today we're sitting down with Tom Bruni of allstarcharts.com. Great to have you here. Thanks for having me, Justine. So what are you looking at to trade today? Today we're focused on palladium. And the reason for that is it continues to show relative strength versus the rest of the precious metal space and comm... Read More

Key Insights

• 🤘 Palladium has shown consistent relative strength compared to other precious metals and commodities.
• 😘 Energy commodities have been performing well, while agricultural commodities have been trending lower.
• 📈 Palladium has survived a correction and continues to show a structural trend higher.
• 🙃 A failed breakdown is serving as a catalyst for potential upside in palladium.
• 💰 Dollar strength does not necessarily impact palladium's performance.
• 🤕 Other precious metals catching a bid and heading higher is a potential risk factor for palladium's trade.
• 😫 The target price for palladium is set at $1,625, which is its former all-time high.

Questions & Answers

Q: What is the reason for focusing on palladium as a trade opportunity?

Palladium has shown consistent relative strength compared to other precious metals and commodities, indicating its potential for further upside.

Q: What is the time frame for this trade?

This is a shorter-term trade idea, with a time horizon of one to three months.

Q: What is the catalyst for reaching the target price?

The catalyst is a failed breakdown, where prices broke below support but quickly reversed back above, trapping sellers and indicating a potential move higher.

Q: Are there any major risks to this trade?

The biggest risk is if metals in general resolve consolidations to the downside, dragging palladium down with them. However, this risk is currently not a major concern based on the current market conditions.

Summary & Key Takeaways

• Palladium is showing relative strength compared to other precious metals and commodities.

• While other commodities have been struggling, energy commodities have performed well and palladium stands out within the metals category.

• After a correction, palladium's structural trend is still upward, presenting an attractive entry opportunity at $1,330.