PALLADIUM weekly uptrend opportunity based On 1.00 Lot Calculation:
- PALLADIUM USE: Palladium finds use in car’s catalytic converters, meaning that if demand for cars rises, therefore, demand for Palladium could rise as well. According to the latest estimates, car production across the world should improve.
- EVENT: CHIP SHORTAGES FOR THE AUTO INDUSTRY SOON TO COME TO AN END, PUSHING CAR MANUFACTURERS TO PURCHASE (STOCK UP) MORE PLATINUM AND PALLADIUM NOW. Platinum and Palladium prices fell in 2021 due to expectations that chip shortages could cause lower car production rate, and therefore lower demand for the metals as they are heavily used by car manufacturers. Some analysts, however, believe that the chip shortage saga could end in 2022 and therefore some car manufacturers are now stocking up more Platinum and Palladium while still cheaper so to better prepare for eventual increase in car production rate.
- 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 2021 GDP growth rate of 8.1%. That being said, the demand for Platinum may rise, which could support Platinum prices. Overall sales in the world's biggest car market rose 3.8% year-on-year with total sales for 2021 to 26.28 million. Production and sales are expected to be better in 2022 than last year on the prospect that issues such as chip shortage and high prices of raw materials ease.
- PALLADIUM IS STILL IN DEFICIT IN 2022: The market could be expected to remain in deficit of around 0.5 million ounces in 2022.
- PALLADIUM PRICE ACTION: Palladium hit an all-time high of 3015 in May 2021. Palladium then started to fall to hit its lowest rate since March 2020 (1686.50), in December 2021. Palladium was last trading slightly above 2000, and if full recover followed (to its recent all time high), that could provide upside of around 48%.
PALLADIUM, January 20, 2022
Current Price: 2040
|
PALLADIUM |
Weekly |
|
Trend direction |
|
|
2500 |
|
|
2380 |
|
|
2210 |
|
|
1880 |
|
|
1800 |
|
|
1700 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
PALLADIUM |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
46,000.00 |
34,000.00 |
17,000.00 |
-16,000.00 |
-24,000.00 |
-34,000.00 |
|
Profit or loss in €** |
40,513.29 |
29,944.60 |
14,972.30 |
-14,091.58 |
-21,137.37 |
-29,944.60 |
|
Profit or loss in £** |
33,756.51 |
24,950.47 |
12,475.23 |
-11,741.40 |
-17,612.09 |
-24,950.47 |
|
Profit or loss in C$** |
57,464.12 |
42,473.48 |
21,236.74 |
-19,987.52 |
-29,981.28 |
-42,473.48 |
* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 08:50 (GMT) 20/01/2022
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