Palladium has tested the 180 price point level several times over the course of the last 6 months and to date this zone has held and in doing so has flashed several very strong positive divergence signals, and two long term buy signals. From a short term and 3-6 month perspective, one can expect the action to remain very volatile, but from a 1-2 year perspective, Palladium is trading at an insanely cheap level; investors will only realise this later, but by then it will be too late toact.

Palladium is a very volatile metal and when it moves the moves are usually explosive in nature; this downward move has created an unbelievable long term buying opportunity for all those who failed to open up long positions in bullion when it was trading at these levels from Oct 2004 to July 2005.

On the short to intermediate time frames, palladiums strength will be determined by how it responds to the corrections in the Gold and Silver markets. If during this corrective phase Palladium can hold above 180 even if Gold trades down to the 720-750 ranges, then it would be very strong sign that an explosive move upwards is not too far off in the makings. Expect this market one day to move in bursts of 30-50 dollars a day. If you have no position in bullion, now would be a great time to add to your positions and continue to add to them on all pull backs.  Market update March 10, 2009

We also published the above info publicly on the 30^th of March 2009 Full article. Almost everything that was stated in the article has come to pass. 

It is also the only precious metal that did not immediately pull back when the dollar started to rally this year. For awhile it actually traded in tandem with the dollar and went on to put in a several new highs before pulling back.

We made the following comments on Jan 5^th, 2010 to our market update subscribers.

Having traded past 400 on a weekly basis, it could potentially spike to 450 before pulling back.  Focusing on the short to intermediate term time frames, Palladium is now overbought, and so it is ready for a pullback. Now is not the time to open up new positions. If you have no positions wait for a strong pull back before deploying new money into this play.

It subsequently traded to and surpassed the 450 mark. The next step now is for a pullback as Palladium has mounted a very strong rally and once the correction gathers steam we will be in a better position to determine which precious metal will be the next top performer.   A break below 420 for 3 days in a row should take it down to the 380 ranges. A weekly close below the 350-360 ranges has the potential to take it down all the way to the 280-300 ranges; this is also roughly the zone the main uptrend line runs through.

From a long term perspective, all strong pull backs in the precious metal's sector (Gold, Platinum, Palladium and Silver) should be viewed as buying opportunities.