Trading Idea: Buy PAUSD (Palladium)
A decline in CME Palladium's commodity price has been observed over the past three months.
Idea core logic:
This long trading strategy identifies commodities with current prices that are significantly higher than their 200-day, 50-day, and 21-day moving averages. The strategy also looks for commodities with an exponential slow moving average that is significantly higher than the current price.
By analyzing these metrics, the strategy generates notable support and resistance levels. Traders can use these levels for market entry and exit, maximizing their profit potential.
Trading Strategy:
Asset Symbol: PAUSD
Latest Price: $1,139.75
Asset Class: Commodity
Rationale:
The price of PAUSD has been on a decline over the past three months, indicating a potential buying opportunity.
PAUSD's current price is significantly lower than its 200-day, 50-day, and 21-day moving averages, suggesting that it may be undervalued.
The exponential slow moving average for PAUSD is significantly higher than the current price, indicating a potential upward trend.
By buying PAUSD at its current price, traders can take advantage of the potential price reversal and profit from the expected upward movement.
Risk Assessment:
This trading idea is suitable for a moderately short investment horizon and a high risk tolerance.
As with any investment, there is always a risk of loss. Traders should carefully manage their risk and set appropriate stop-loss levels.
It is recommended to closely monitor the market and adjust the trading strategy accordingly based on the provided facts.
Technical Outlook
CME Palladium has receded 44.8 below a resistance level of 1,103.33. In the near term, the Palladium future is approaching its 21 day Simple Moving Average at $1,140.24.
The uptrend of CME Palladium continues, with its share price rising 3.26% over the past 9 days. Today, it is expected to rise a further $2.23, or 0.2%.
During the first half of today's session, the Palladium future rebounded from earlier losses, recovering from lows around $1,128.78.
Over the past month, there has been a downward trend in CME Palladium's share price, with a decline of 9.31%.
However, there are signs of a possible bullish phase emerging. Palladium has broken above its 21 day Simple Moving Average at 1,140.24. This could indicate the start of a new bullish trend. Furthermore, CME Palladium is pushing upwards towards a key Bollinger Band® level around 1,172.
Extensive multifactorial technical analysis suggests that CME Palladium will continue to extend its strong run in the short-medium term. Today, it reached as high as $1,143.78. With all probabilities considered, the Palladium future is expected to appreciate amid a risk-on mood in the coming days.
In comparison, other commodities are also showing positive movements. Platinum is currently trading at around 949.05, up 0.97% from the previous session's close of 939.9. Meanwhile, Copper recorded a gain of 0.23% despite touching lows around $1,128.78.
A decline in CME Palladium's commodity price has been observed over the past three months.
Idea core logic:
This long trading strategy identifies commodities with current prices that are significantly higher than their 200-day, 50-day, and 21-day moving averages. The strategy also looks for commodities with an exponential slow moving average that is significantly higher than the current price.
By analyzing these metrics, the strategy generates notable support and resistance levels. Traders can use these levels for market entry and exit, maximizing their profit potential.
Trading Strategy:
Asset Symbol: PAUSD
Latest Price: $1,139.75
Asset Class: Commodity
Rationale:
The price of PAUSD has been on a decline over the past three months, indicating a potential buying opportunity.
PAUSD's current price is significantly lower than its 200-day, 50-day, and 21-day moving averages, suggesting that it may be undervalued.
The exponential slow moving average for PAUSD is significantly higher than the current price, indicating a potential upward trend.
By buying PAUSD at its current price, traders can take advantage of the potential price reversal and profit from the expected upward movement.
Risk Assessment:
This trading idea is suitable for a moderately short investment horizon and a high risk tolerance.
As with any investment, there is always a risk of loss. Traders should carefully manage their risk and set appropriate stop-loss levels.
It is recommended to closely monitor the market and adjust the trading strategy accordingly based on the provided facts.
Technical Outlook
CME Palladium has receded 44.8 below a resistance level of 1,103.33. In the near term, the Palladium future is approaching its 21 day Simple Moving Average at $1,140.24.
The uptrend of CME Palladium continues, with its share price rising 3.26% over the past 9 days. Today, it is expected to rise a further $2.23, or 0.2%.
During the first half of today's session, the Palladium future rebounded from earlier losses, recovering from lows around $1,128.78.
Over the past month, there has been a downward trend in CME Palladium's share price, with a decline of 9.31%.
However, there are signs of a possible bullish phase emerging. Palladium has broken above its 21 day Simple Moving Average at 1,140.24. This could indicate the start of a new bullish trend. Furthermore, CME Palladium is pushing upwards towards a key Bollinger Band® level around 1,172.
Extensive multifactorial technical analysis suggests that CME Palladium will continue to extend its strong run in the short-medium term. Today, it reached as high as $1,143.78. With all probabilities considered, the Palladium future is expected to appreciate amid a risk-on mood in the coming days.
In comparison, other commodities are also showing positive movements. Platinum is currently trading at around 949.05, up 0.97% from the previous session's close of 939.9. Meanwhile, Copper recorded a gain of 0.23% despite touching lows around $1,128.78.
Comment:
Long idea not working. Bearish price action sustained below 1070 with stop loss activated at 1000.