PALL Palladium Monthly and Weekly Charts; Palladium Continues Printing All-Time Record Highs; Overbot; Negative Divergence Developing; Upper Band Violation; Price Extended

Palladium is on fire to the upside. The screenprinter's are frantically working all weekend long producing "PALL 2.3K" hats. Spot palladium is $2500+. CME prints 2313. The palladium bulls are tripping over each other to buy this shiny silvery-white metal. Cousin Frank just buried a wheelbarrow full of palladium in his back yard last week.

Palladium has left platinum in the dust. Gold has left platinum in the dust. What will all the gal's do with their platinum rings? They will want palladium rings now. The precious metals (PM) are at the following prices. Palladium is at 2300. Platinum is at 1030. Gold 1560. Silver 18.06. Base metal copper, Dr Copper, is at 2.85. There is an ongoing battle between using palladium and platinum in car applications especially catalytic converters. However, that always seemed like a strange argument and set of talking points from the media and metal companies.

Let's think outside the box, perhaps outside the universe. Cue the Twilight Zone music. Most folks do not know that one of the top key metals that have potential space applications, think the US Space Force that was initiated by President Trump, is palladium. Tellurium and germanium also have potential for bigtime use in the manufacture of future spacecraft that will explore the cosmos. Pd, Te and Ge are the chemical symbols for the elements that will lead us to the metals and composites that will lead us to other universes. Perhaps space is the reason palladium receives more love than a honey on Valentine's Day. Note that US defense contractors LMT, NOC and RTN are at all-time record highs although Raytheon is running its factories full-tilt producing Tomahawks. A voice shouts, "Earth to Keystone, Earth to Keystone, come out of the clouds and return to Earth to discuss the palladium charts." 

Palladium obviously had more juice in the tank for more new highs this year, and they occur. Price is parabolic; straight vertical. You know what happens with commodities, and any ticker for that matter, that goes parabolic, yes, the reverse gear is just as fast. The tricky part is finding out where the momentum peters out and dies. Parabolic behavior is occurring in the US stock market currently which is a very rare sight in that arena. Parabolic price moves are common in the commodities.

Both the monthly and weekly charts, although different time frames, display the similar characteristics. The chart indicators are a mixed bag of negative divergence (red lines) and long and strong behavior (green lines) that will want additional matching or higher highs in these respective timeframes.

Looking at the weekly chart, since it is shorter duration chart than the monthly, the overbot RSI, stochastics and money flow are all agreeable to a pullback. The stoch's and money flow are cooked with neggie d and cannot add anymore strength to price. Ditto the RSI but there is some near-term momo in play. The MACD line and histogram are experiencing an ongoing upside orgy of glory (that will want more highs in price in the weekly basis ahead). 

PALL has violated the upper band on the weekly chart so the middle band at 1780, and rising sharply, and lower band at 1457, are on the table. Price is extended above the moving average ribbon so a mean reversion lower is needed. Thus, the weekly chart wants PALL to pullback now, however, after a week or so lull, price will come back up again for a week or so and print matching or higher highs again. At that time, you have to see if the MACD goes neggie d to identify the top on the weekly, or not. If the neggie d is universal across all indicators, the top is in and PALL will pull back for several weeks.

The monthly chart is overbot with neggie d showing for the stochastics and money flow. The RSI, MACD line and histogram are long and strong wanting more price highs on the monthly basis. The upper band is violated so the middle band at 1409 and lower band at 732 are on the table. The rising wedge patterns are bearish. So what does all this mumbo-jumbo mean?

PALL is going to pullback for a week or so, say to end January, but then rally again for a week or so and come right back up to 2300+ again in early February. Let's say the weekly tops out then with neggie d so that will begin a multi-week slide, say, during February maybe into early March, then a big recovery all the way back up again due to the strong MACD on the monthly chart. Palladium may print its bigtime top in March; it will occur when the MACD line goes neggie d on the monthly chart above.

Keystone is not trading palladium right now and probably will not unless that nice setup occurs on the weekly chart say early February. If that pending weekly drop is played during February do not marry the trade since PALL will come right back up again in the monthly time frame. Palladium can likely be shorted from, say, a March-May multi-month top through 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.