As you may know, I define strategic commodities as the obvious, like Rare Earth Elements, and specialty commodities as the stuff that is of a more progressive level than the old fashioned oil, gas and agri. Uranium and the PGMs, for example.
In this update I want to again highlight the PGMs. The chart I really like is that of Palladium, for its break upward from a long-term bottom/base. But not being expert in the PGM area, I also want Platinum in there and so voila, to the rescue rides the Sprott Platinum & Palladium fund.
In a market that has driven the precious metals and certain commodities upward so far, I am right now only considering pullbacks, preferably after selling off at least partial positions in items that have gone vertical up. I’ve traded SPPP a couple times, and PALL before that.
The daily chart has corrected, held the first support level (visible on longer-term monthly chart below) and is now perched on the 50 day average, trying to hold it. RSI and MACD are amenable to a potential upside. I am thinking 11.78 for a mental or actual stop loss, personally, because it has already had a breakdown and shakeout from that support level, and should not need another.
The monthly chart shows the rationale for support around 11.78 and resistance at 13.50 (+/-).
I am only thinking trade (13.50 target) because I think that the seas may get rough for most everything before the year is out. But here is the thing. If you are a commodity super-cycle type bull and are looking for investment in that thesis, it appears that the PGMs are still buyable.
It’s not like my analysis is the only analysis out there and it’s not like I’m going to always be right (I sure am not). So the above is presented as an idea for traders and investors.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
