Palladium Soars Over $2,000 per Ounce
|Palladium exceeds $2,000 per ounce on Monday, boosted by rising tensions in the Middle East, while risk-off sentiment dominates the market.
Today, Palladium jumped up $34.22 or 1.76% reaching $2,023.48, gold climbs $23.96 or 1.54% reaching $1,576.36, while silver advances 36 cents or 2.02% touching $18,416 per ounce.
Thus, precious metals continue to increase their profits this Monday fueled by investors' sense of risk-off following escalating tensions in the Middle East following the death of Commander Qassem Soleimani on Friday 03rd.
The statement of the U.S. President Donald Trump of this weekend, arguing that the assassination of the Iranian general would prevent future attacks and make the Middle East safer.
However, President Trump's actions seem to go in the opposite direction due to the increase in protests in reaction to the death of General Soleimani.
Iran, for its part, also helped to escalate tensions by declaring that it is abandoning the limits on uranium enrichment established in the nuclear agreement signed in 2015.
Evidently, the increase in tensions has begun to hit the markets, raising the risk and volatility, a situation likely to last for a long time.
Technical Overview
The Palladium price in its weekly chart and log scale, reveals that its Elliott wave sequence runs in the fifth wave of Intermediate degree labeled in blue.
The movement developed by Palladium near the upper line of the ascending channel, suggests the possibility of a bullish continuation for the precious metal.
The next chart exposes the precious metal in its daily timeframe. In the figure, we observe the price action running in a wave 5 of Minor degree labeled in dark green.
An alternative count would imply the likelihood that Palladium had completed an extended wave 3 of Minor degree on December 17th, when the price found resistance at $2,002.005 per ounce.
The higher volume traded on December 17th, compared by previous sessions, raises the feasibility of this alternative wave count.
If this scenario is valid, the precious metal could be starting to build a corrective formation, which by the alternation principle should be a complex structure. This formation should be a combination of simple corrective patterns.
To conclude, the dominant Palladium's trend remains bullish. However, a consolidation as a complex corrective structure is very likely for the coming trading sessions.
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