Chart Book
PUBLISHED : Monday, 01 September, 2014, 4:21am
UPDATED : Monday, 01 September, 2014, 2:30pm

Chart of the day: Palladium on wave of rally

BIO

Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.
 

Palladium has risen to US$900 per ounce this month while gold remains stuck at around US$1,300. Yes, it is cheaper than the yellow metal, but then in 2009, gold cost US$850 and palladium was just US$200. Its secular rally actually started in 2003 and can be seen as a series of five distinct moves - a concept known as Elliott Wave theory. Based on this, together with the chart patterns and trends, we expect another squeeze to the psychological level at US$1,000, where the bull market might end. Compare this wave count with the horrible boom and bust from 1997 to 2003 when a large carmaker tried to corner the market. Well, you can see the results!

Nicole Elliott is a technical analyst

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