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I've only traded it on medium term swing trades, but I followed the futures charts for a while and found it's very thinly traded compared to Gold and Silver, but the correlation to them both is strong.
Gold traded 149,111 contracts on Friday, whereas Silver traded 49,394 and Palladium only traded 4,175 which is roughly the normal relationship. See CME Palladium Futures Settlements Data for last weeks data from the CME. So if you want the best liquidity then Golds a better option, but thin markets have opportunities too.
"Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill" – Reminiscences of a Stock Operator.
Palladium is part of the Precious Metals sector along with "it's" brothers Platinum, Gold, Silver and Copper.
Palladium futures is not the most popular market, but this week it was one of the more volatile Futures Markets. Good traders know volatile markets create better opportunity for profit and higher risk of loss.
4 hour chart from this morning, (Mar. 29th 2019). From the chart… we have been on a serious uptrend, followed by a significant retracement this week. In January PA Futures were just about $1200. By late March PA traded over $1575 per contract. This week from Monday around price $1540 we dropped to Thursday low of $1303. Roughly a $237 move per 1 contract is = $23,700 over 4 days. I suggest being careful with this market when trying to capitalize on the volatility, make sure you can afford the risk, use stops to try and limit the risk and make sure you are paying attention and watching price action!!. Markets with less volume like PA cause for more chance of larger moves in shorter times. $1385 and $1460 are levels to watch for reaction off previous Support and resistance and below the current price of $1356 is $1270. This chart was prepared using E-Futures Int'l software, which you can demo for 28 days with realtime data. Good Trading!
PM with any questions about Cannon Trading (800) 454-9572 (310) 859-9572. Trading commodity futures, forex and options involves substantial risk of loss. The recommendations contained in this post are of opinion only and do not guarantee any profits. These are risky markets and only risk capital should be used. Past performance is not necessarily indicative of future results.
Palladium is a great market for trend followers. Some of the biggest trading profits I've seen have come from Palladium trends, including the recent move. It does have less liquidity than Gold and Silver but enough volume for small speculators using longer term trend following strategies.
This model for example picked up the move on September 18,2018 and rode the trend all way until March 27, 2019. I would avoid trading this market until it consolidates and shows some clearer signs of a top or trend.
Futures Trading is Risky. Past Performance is not indicative of future results.
