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"The Tesla of commodities" - And it's not gold, iron ore or platinum.

by , 02 March 2020

Last week we saw a precious metal shoot up over $200 overnight!

This was the first time in history we saw this metal move over 8% within a few hours, taking it to a record high of $2,769.

Even Edward Meir, an analyst at ED&F Man Capital Markets said it…
“…has been unbelievable - it's like the Tesla stock of commodities,”

And while the Coronavirus continues to spread, stock markets are plunging on a weekly basis and investors are rushing to safe havens like gold, silver and platinum - there is one commodity that is making new highs and blowing all of the precious metals out of the water.

In today's article we'll reveal which commodity it is, why I expect it to rally at least another $1,070 and what we can do to profit from the rise.

Let's get to it!
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Thank you China – and no… not for the Coronavirus 
 
I’m talking about Palladium…
 
The main reason why Palladium is flying and will continue to do so, is all thanks to regulations taking place in China. 
 
We are seeing major industrial demand driven by the expectations that there'll be stricter environmental regulations and standards in China.
 
In fact, they expect production to trail by 1.9 million ounces of palladium this year. That’s an insane 800,000 ounces more than last year. 
 
For you to understand why there is an increase in demand for palladium, we need to look at what the main industrial use for this precious metal is.  
 
Did you know, two-thirds, or 67%, of all palladium is consumed each and every year from the manufacturing of automobile catalytic converters. 
 
What’s important to note is that the palladium - used in the catalytic converter - helps control the harmful emissions and pollution from fuel-powered vehicle car exhausts…  
 
And now, with Chinese and European vehicles needing to meet the (China 6 and Euro 6d) legislation we can expect a rise in the global average loadings on gasoline-catalysts.
 
This increase in demand, will send the palladium price even higher.  
 
Vivek Dhar, an analyst at Commonwealth Bank of Australia summed it up nicely:
 
"Demand is being driven by environmental regulations, particularly in China, which has increased palladium use in vehicles and should offset any recent weakness in car sales"
 
Right, so we know the big reason why Palladium should continue rallying, but wait until you see this chart…
 
This half-crescent pattern will take Palladium to the moon
 
 
 
Looking at the above daily Palladium chart, you can see it’s been moving in a strong uptrend from a low price of $1,460 up to the previous high at $2,530. 
 
During this time, it has formed a strong upward (buying) momentum pattern which I call the “Half Crescent” formation (shaded grey). 
 
This is when the price moves up at a steep and round angle, which creates a formation that looks like the crescent shape similar to the moon.  
 
And now that the price has broken out and above the six-month ceiling level (pink line), tells me that palladium is going to continue to sky rocket.
 
To calculate the next target of Palladium we'll basically use my breakout High-Low calculation…
 
This is a target calculation where I take the price difference between the most recent high ($2,530) and the most recent low ($1,460 and I add it to the most recent high price.  
 
Price Target =
= (High - Low) + High
= ($2,530 - $1,460) + $2,530
= $3,600
 
This means, we will be able to take full advantage of the palladium price rise while it rallies another $1.070…
 
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Thanks to a shortage of pork and chicken in China, this South African poultry business could see a 106% increase in its share price in less than 12 months! 
 
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How to profit from the $1,070 rise of palladium
 
First you can buy palladium CFDs and hold until it, hits the target price.  
 
Second, you can simply wait for my next SMS as I’ll send you a buy signal with easy instructions from resource companies that produces palladium and that will rise in price with it such as Anglo American and Anglo Platinum.
 
Trade well,
Timon Rossolimos,
Analyst, Red Hot Storm Trader
 
P.S: A small group of savvy South African traders are pocketing fast gains like 389%, 135% and even 52% in the global financial markets. You can find out how here…


"The Tesla of commodities" - And it's not gold, iron ore or platinum.
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