Palladium weekly special report based On 1.00 Lot Calculation:
PALLADIUM USE AND MARKET SHARE:
- Palladium is mostly used in catalytic converters by the car industry to reduce harmful gas emission, while tightening regulation is forcing auto makers to put more of Palladium into each vehicle, which in turn could keep demand outlook positive. Palladium has been also used in fuel cells to generate power.
- MARKET SHARE (PRODUCERS): Russia is the largest producer holding 43% of the markets, while South Africa is the second largest with 33.00% of the markets. Canada is third on the list with 9.5% of the global production.
- MARKET SHARE (CONSUMERS): China is the largest Palladium consumer with 31%, while Europe and North America (USA) hold 20% each. Japan stands at 11%.
CHINA:
- CHINA REOPENS ITS ECONOMY (2023): China’s COVID-Zero policy has come to an end. The Chinese government is no longer ordering lockdowns and quarantines. China’s Vice Premier Liu He said the economy will likely rise to its pre-COVID growth trends in 2023.
- WALL St. ANALYSIS: Goldman Sachs just raised its 2023 GDP forecast from 5.2% to 5.5%. China consumes about 30% of the world’s Palladium.
- CHINA VEHICLE SALES (December): Vehicle Sales in China were 2.56 million units in December 2022, a 9.7% increase over sales in November 2022. Palladium is an essential component of automotive emission systems.
PALLADIUM PRICE ACTION:
- TECHNICAL ANALYSIS: PALLADIUM SEES STRONG SUPPORT AT $1700: Since November 2019, the level of 1700 had been only thrice breached, and this is the fourth time. The first time was during the Pandemic (2020 = Low of $1352.60), and the second time was right before the war in Ukraine began (December 2021 = Low of $1529). (Chart below)
- RECENT PRICE ACTIONS: PALLADIUM HAS HAD A DOWNWARD CORRECTION OF OVER 50% (FROM ALL- TIME HIGH OF $3409 TO $1647). Palladium currently trades around $1700, and if a full recovery followed to its recent all-time high, this could be an upside over 100%. However, it could also decline further.
Weekly Graph: Palladium (2018-2023)
PALLADIUM, January 19, 2023
Current Price: 1,700.00
|
PALLADIUM |
Weekly |
|
Trend direction |
|
|
2,500.00 |
|
|
2,250.00 |
|
|
2,000.00 |
|
|
1,600.00 |
|
|
1,500.00 |
|
|
1,400.00 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
80,000.00 |
55,000.00 |
30,000.00 |
-10,000.00 |
-20,000.00 |
-30,000.00 |
|
Profit or loss in €2 |
73,937.15 |
50,831.79 |
27,726.43 |
-9,242.14 |
-18,484.29 |
-27,726.43 |
|
Profit or loss in £2 |
64,845.59 |
44,581.34 |
24,317.09 |
-8,105.70 |
-16,211.40 |
-24,317.09 |
|
Profit or loss in C$2 |
108,080.00 |
74,305.00 |
40,530.00 |
-13,510.00 |
-27,020.00 |
-40,530.00 |
1. 1.00 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 10:44 (GMT) 19/01/2022
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- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more details.