CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Palladium

Special Reports - 09/02/2024

09 February, 2024

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 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 special report based On 1.00 Lot Calculation:

PALLADIUM USE AND MARKET SHARE:

  • Palladium is mostly used in catalytic converters by the car industry to reduce harmful gas emissions while tightening regulation is forcing automakers to put more Palladium into each vehicle, which in turn could keep the demand outlook positive. Palladium has also been used in fuel cells to generate power.
  • MARKET SHARE (PRODUCERS): Russia is the largest producer holding 43% of the markets, while South Africa is the second largest with 33.00% of the markets. Canada is third on the list with 9.5% of the global production.
  • MARKET SHARE (CONSUMERS): China is the largest Palladium consumer with 31%, while Europe and North America (USA) hold 20% each. Japan stands at 11%.
  • RUSSIA EXPECTED TO CUT PRODUCTION IN 2024: NORNICKEL, THE LARGEST PALLADIUM PRODUCER IN THE WORLD, TO CUT PRODUCTION IN 2024. The Russian miner said the output of the metal may fall almost 15% to as low as 2.3 million ounces. The company said that its production was down 17% year on year in Q4 of 2023.

CHINA:

  • NEW STIMULUS PACKAGES IN Q1 OF 2024: CHINA CENTRAL BANK CUT THE RESERVE REQUIREMENT RATIO (RRR) FROM FEBRUARY 5. For some context, China went with two RRR cuts in 2023 i.e. one in March and one in September. They were both for 0.25% points each. There will be a hefty reduction this time around, as the Chinese central bank announces a 0.50% points cut to the reserve requirement ratio (RRR), from 10.5% to 10%. This could release around 140 billion dollars to the economy. This is on top of the expected stimulus of 278 billion dollars.
  • CHINA REOPENS ITS ECONOMY (2023): China’s COVID-Zero policy has ended. The Chinese government is no longer ordering lockdowns and quarantines. China’s Vice Premier Liu He said the economy could rise to its pre-COVID growth trends in 2023.

PALLADIUM: PRICE ACTION

  • BREAKING: PALLADIUM HAS TESTED ITS LOWEST PRICE SINCE AUGUST 2018 ($856.75). The Palladium price has fallen around 20% since the start of the year, becoming at one point cheaper in price than Platinum for the first time in five years.
  • PALLADIUM PRICE ACTIONS after most recent price below $1000: The table below shows the Palladium price reaction after testing levels below $1,000 for the first time since 2018.

DATA SOURCE: MetaTrader 4

Please note that past performance does not guarantee future results.

ANALYST EXPECTATIONS 2024:

SOURCE: Bloomberg

PALLADIUM, February 9, 2024
Current Price: 875

PALLADIUM

Weekly

Trend direction

UP

Resistance 3

1200

Resistance 2

1050

Resistance 1

950

Support 1

800

Support 2

790

Support 3

780

Example of calculation base on weekly trend direction for 1.00 Lot1

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

32,500

20,000

7,500

-7,500

-8,500

-9,500

Profit or loss in €2

30,179

18,572

6,964

-6,964

-7,893

-8,822

Profit or loss in £2

25,774

15,861

5,948

-5,948

-6,741

-7,534

Profit or loss in C$2

43,738

26,915

10,093

-10,093

-11,439

-12,785

1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:00 (GMT) 09/02/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient 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 ManagerClient Manager for more details.
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