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Palladium

Market Opportunities - 22/06/2021

22 June, 2021

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 weekly uptrend opportunity based On 1.00 Lot Calculation:

  • PALLADIUM PRICE ACTION: Palladium fell around 11.00% last week. Palladium fell to its lowest rate in three months ($2450). Palladium has lost around 15% since its reached its all- time high of 3015 back in May 2021.
  • Palladium is most heavily used in the production of catalytic converters integrated into vehicles to curb gas emission and air pollution. Europe and China have recently imposed stricter emission standards, which could require bigger use of Palladium.
  • CHINA IS THE LARGEST PLATINUM AND PALLADIUM CONSUMER IN THE WORLD WHICH COVERS ONE THIRD OF GLOBAL AUTOMOTIVE PRODUCTION: Recent data showed that the Chinese economy has continued to recover along with its car industry, which is one of the largest consumers of Palladium and Platinum. China reported Q1 GDP growth rate of 18.3% year on year, the highest on record. That being said, the demand for Platinum may rise, which could support Platinum prices. Meanwhile, auto sales in China surged between January and May, up 36% from the same period a year earlier.
  • SUPPLY SHORTAGE: RUSSIA (43% of global supply in 2020): MMC Norilsk Nickel PJSC, the world’s largest producer of palladium, expects a significant shortfall of the metal this year after flooding at its Arctic mines upended its December projection for an almost balanced market. According to them, rebounding demand combined with flooding at Nornickel’s Oktyabrsky and Taimyrsky mines, and incidents at the company’s concentrator, will produce a palladium deficit of 900,000 ounces.
  • ANALYST OPINION (UBS raises Palladium Price Forecast from $2900 to $3100): UBS cut its forecast for palladium mine supply by 545,000 ounces, translating into a deficit of about 1 million ounces and a 10th straight year of market shortfall. Palladium may hit $3,100 per ounce this year.

Palladium, June 22, 2021
Current Price: 2570

Palladium

Weekly

Trend direction

UP

Resistance 3

3000

Resistance 2

2865

Resistance 1

2730

Support 1

2420

Support 2

2350

Support 3

2260

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

Palladium

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

43,000.00

29,500.00

16,000.00

-15,000.00

-22,000.00

-31,000.00

Profit or loss in €**

36,143.87

24,796.38

13,448.88

-12,608.33

-18,492.21

-26,057.21

Profit or loss in £**

30,972.02

21,248.24

11,524.47

-10,804.19

-15,846.15

-22,328.66

Profit or loss in C$**

53,256.36

36,536.34

19,816.32

-18,577.80

-27,247.44

-38,394.12

* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 9:00 a.m. (GMT+1) 22/06/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client 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 Client Manager for more details

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