Chart of the day: Palladium on wave of rally
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