PALL Palladium Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing

Palladium and platinum were highlighted at the start of the year. Palladium was experiencing euphoric joy and popularity while platinum was shunned and ridiculed. The expectation was for a springtime-ish top in palladium, since the monthly chart was long and strong, while platinum was set up much more attractively on an intermediate and long-term basis going forward. Well, what is the story now? Spring begins next Wednesday, 3/20/19, the same day as the FOMC fireworks and Chairman Powell's song and dance presser.

For palladium, PALL, the MACD line and histogram remain long and strong, on the monthly basis. The RSI, stochastics and money flow, however, are in negative divergence. The RSI and Stoch's are overbot agreeable to selling going forward on the monthly basis. This set-up typically resolves with a month or so of down, due to the neggie d, then back up for another higher higher say a month out, due to the possie d, and at that time, if the MACD line goes neggie d, the top is in for palladium. If long, you will want to run for your life.

If you are a short-seller, this provides a great opportunity now, in this shorter term, and then for the more substantive top, say, in May. Price has gone parabolic and you know what happens with commodities that go parabolic, yes, they come back down to earth in the same quick fashion. So palladium may be in for a wild ride with a sharp move lower for a month, then launch higher for a month, then roll over into oblivion say, from a significant May-June top.

Palladium is extended above its moving average lines and desperately needs a mean reversion. If you enjoy strong profits on palladium, consider scaling out over the next couple-three months. Sell one-fourth or one-third of the position each 4 weeks going forward. It looks like a smart trade to then take that money as it comes and feed it into a long platinum trade going forward.

For short-term trading, looking at the palladium daily and weekly charts, price will likely come up to the 1550-ish level for another look, say over the next week or two. At that time, the MACD line may go neggie d on the weekly marking a top (a great place to enter short). So down for several weeks, say in April, then back up again say, in late April into May, because of the monthly chart MACD line, and that would be a significant top for palladium. The charts can be monitored as time moves along.

For platinum, the chart is set up with a nice falling wedge pattern and positive divergence. If you are investor looking for a place to hide out, or a money manager that simply wants to find opportunities that will hold up if the stock market collapses, look to platinum which will likely trade sideways to sideways higher this year into next. Hiding in platinum appears to be a far smarter idea than hiding in utilities or staples. 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.