While the car manufacturer is crashing, Palladium is showing some huge upside to come!
Now here’s the funny thing. Palladium is one of those precious metals that majority of investors don’t consider in their portfolios.
And yet, 68% of palladium demand is for catalytic converters. One of the analysts at Macquairie Research said that the VW and BMW diesel emissions will “be supportive of more gasoline-powered vehicles, which almost always use palladium catalysts."
In the coming months, I assume there’ll be greater focus on installing high quality catalytic converters as regulators climb in to all the manufacturers.
However, my expertise does not lie in the car industry, but rather the technical analysis side of things.
So let’s start off by looking at the HUGE downtrend, palladium has been on since August 2014.
Take a look at the chart.
(Never miss a TradingTips Profit Alert again, click here and join 28,600 members for FREE )
Palladium is showing an 11 month downtrend, but now is showing a good buy signal!
Looking at the weekly chart of Palladium, it’s crashed from $889 an ounce down to $560 an ounce.
But last week, we saw a spike in the palladium price which took it back up to $666 an ounce.
Fortunately, this set a new up leg, which you can expect even more upside to come.
The first target I’m looking at is around $738 an ounce.
This will be a quick 10.8% gain, which you can expect with the palladium price.
And with the power of the ETF, you can bank a 108% gain
You can catch a ride on the palladium trade using the New Gold Palladium ETF (NGPLD).
And with a gearing of 10, depending on the market maker you choose, you can bank up to 108% gain on your initial margin on this one trade.
Make sure you have specific rules to follow which includes:
Stop loss rule
Profit management rules
If I know you’re following strict rules with your trades, I’ll be more than happy to keep firing these Trading Tips Profit Alert
If you don’t have these crucial rules at the top of your head, then you’ll need to get yourself a copy of my 94 Top Trading Lessons of All Time
hard cover book… Click here
to claim it.
"Wisdom yields Wealth"
Senior Editor: Trading Tips
: Red Hot Storm Trader
Author: 94 Top Trading Lessons of All Time
PS: Watch our latest interview where we convinced a wealth builder to put some money into trading!