Palladium prices go “parabolic” and what it means
(Kitco News) - The palladium futures market is on fire, hitting a record high on Friday and nearing $2,300 an ounce. Rising demand and limited supply are the two main elements that fuel major bull runs in any market.
Nobody knows where the palladium futures market will end up topping out in price, but it is indeed a “gunslinger’s” affair to try to trade it, at present. One could be right on prices appreciating over a period of time, but be wiped out by a significant, short-term downside correction in prices that can be argued is due right now.
What is known is that the palladium market has gone into a “parabolic” price phase—meaning in commodity trading parlance a chart pattern in which prices rise or fall with an increasingly steeper slope. History shows that when a market goes parabolic the eventual top is usually reached sooner rather than later.
So, while there are no technical clues regarding what price palladium futures prices will eventually hit before the bull move ends, technical odds now suggest the top in palladium prices is coming soon.