Commodity Blog

Palladium is trading inside a horizontal channel since July 6. The chart pattern has formed after a considerable outburst of volatility, which went both ways. The price consolidation process on this industrial metal looks quite smooth with enough confirmations of upper and lower borders.

You can see the channel outlined with the yellow lines on the chart screenshot below. The cyan lines market the possible entry points for breakout trading, while the green lines show the profit targets equal to the channel’s height. You can notice that they coincide with the pre-channel peaks. Do not forget to click on the image to get a full-sized screenshot:

Update 2012-07-23: Short position entered on pull-back to 570.05. Stop-loss set at 574.95; take-profit — at 558.55.

Update 2012-07-24: Position closed at loss due to stop-loss at 574.95.

If you have any questions or comments regarding this chart pattern on palladium chart, please feel free to reply below.