PALL Palladium ETF Monthly Chart; Overbot; Upper Band Violation; 2-Leg Bull Flag Pattern

PALL, the palladium ETF, has been the long trader's pal for the last three years rewarding those that bot the tweezer bottom in early 2016. Interestingly, that is when the global central bankers colluded to save the stock markets from crashing into oblivion. The central bankers are the market.

Platinum and palladium are very similar metals in the same grouping in fact but the stock charts could not be more opposite. Platinum has collapsed into Hades while palladium exalts higher to glory. Palladium is a growing favorite in jewelry, especially men's accessories, and most notably in high-end offerings. The central banks have pumped stock markets higher for a decade rewarding the wealthy elite class, that own large stock portfolios, while tossing common Americans under the bus. These rich folks purchase palladium bobbles, beads and trinkets with their obscene stock market gains.

The two-leg bull flag (blue) stock chart pattern is in progress. It began at 48 and ran to 104 so that is 56 bucks. The sideways consolidation occurs with a slight downward bias forming the flag; the chart is textbook. The second leg of the bull flag begins at 87 so this targets 143 (56+87). So PALL likely has another 20 points of upside to it, at least.

The red lines show negative divergence for the histogram, stochastics and money flow. This will create pullbacks going forward. The RSI and stochastics are overbot agreeable to a pullback in price. The green lines, however, show long and strong juice for the RSI and MACD line. These two parameters want more higher highs after any pullbacks occur in this monthly time frame. Thus, price will likely jog as it crests towards a top perhaps at 140-150. One month down, then a month back up to new highs, then a month down, then a month back up for new highs again, at this time, perhaps in April-May, palladium should begin singing its swan song (neggie d forms for the RSI and MACD).

The upper band is violated so the middle band at 97 and rising is on the table going forward. PPLT likely floats higher slowly into March-May, say up to 140-150, then will roll over to the downside and that is when that middle band will come into play say around summertime or Labor Day.

If you want to play the upside momo, you can open a long in PALL. As explained, there should be more up ahead but it will be choppy up. Thus, if you enter a long and PALL drops, you will feel reasonably good that price will come up again for the higher highs on the monthly basis as explained above. PPLT is a much safer intermediate and long-term long to play than palladium. PALL will experience more joy but the party will be ending as winter ends and spring begins. Keystone does not hold PALL right now and likely will not trade it. If you want to own a stock on the long side in the platinum and palladium metal grouping arena, PPLT is better. When PALL peaks, say, March-May, Keystone will look into shorting it for the remainder of the year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.