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Volkswagen's scandal sparks a 108% trading gain with this one precious metal!

by , 30 September 2015

Last week, we heard that Volkswagen admitted that up to 11 million vehicles, could be misreporting their true emission levels.

Investors and companies took this news quite badly. In fact, Volkswagen shares dropped almost 30% last week. Not only that but, the former Volkswagen CEO Martin Winterkorn stepped down and took responsibility for the German carmakers rigging of the US emissions tests.

And so, the market crash wiped out a significant value of the company.

This was the worst crisis in its 78 year old history.

Normally when crises emerge, there are huge profitable trading opportunities that come our way.

And I've found one that I think you'll like.

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. 

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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:
  • Money management
  • 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 tips out…
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. 

Always remember,
"Wisdom yields Wealth"
Timon Rossolimos 

Senior Editor:  Trading Tips 
Head AnalystRed 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!
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Volkswagen's scandal sparks a 108% trading gain with this one precious metal!
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