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Palladium

Market Opportunities - 31/07/2020

31 July, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Palladium uptrend opportunity based On 1.00 Lot Calculation:

  • South Africa, the second-biggest palladium producer, is hardest hit in Africa, with a spike in new coronavirus infections. According to Bloomberg, mines are facing long delays in bringing thousands of workers back. Mining capacity is at about 50%.
  • The weakening dollar, amid expectations for an additional massive stimulus package from the US Congress, could provide support for the palladium price.
  • Technically, the palladium price seems to be oversold indicating a potential (upward) reversal.

Palladium, July 31, 2020
Current Price: 2105

Palladium

Weekly

Trend direction

UP

Resistance 3

2450

Resistance 2

2350

Resistance 1

2250

Support 1

1960

Support 2

1860

Support 3

1760

Example of calculation base on weekly trend direction for 1.00 Lot*

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

34,500.00

24,500.00

14,500.00

-14,500.00

-24,500.00

-34,500.00

Profit or loss in €**

29,133.59

20,689.07

12,244.55

-12,244.55

-20,689.07

-29,133.59

Profit or loss in £**

22,217.34

18,683.75

11,057.73

-11,057.73

-18,683.75

-26,309.77

Profit or loss in C$**

46,323.15

32,896.15

19,469.15

-19,469.15

-32,896.15

-46,323.15

* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 10:25 (GMT+1) 31/07/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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