Trade of the week: long June Palladium futures
We would like to go long June Palladium futures at 929.00 since these bounced off support and have risen above last week's highs, triggering a short-term technical buy signal. The upside target is around the 1000.00 mark and the stop loss below the current April low at 870.00.
(Video transcript)
Tariff unsurety and trading volatility
Axel Rudolph: Hello and welcome to "Trade of the week" on Monday 14th April, 2025. And what a weekend it has been once again. We've got our US President Trump keeping us on our toes. And, as you might know, last week we didn't put a trade on because of the heightened volatility. And to be quite honest, this week I'm not so sure either. But I can't keep on doing this.
This week's trading opportunity
So let's look at this week's "Trade of the week", which is to go long Palladium June Futures on the Daily Financial Bet (DFB). Now, why am I looking at Palladium? First of all, it's less volatile than the other precious metals, and quite a lot of metals in general. well, last week we did fall towards the previous, and just below the previous, lows back to September of last year.
And we fell through these lows, but, sort of, held except for one day, except for Tuesday, above these lows. So that's telling me that this support area may actually hold in the short-term.
And then today, I mean, I looked at this already an hour or so ago and had a better entry level, but we are breaking above last week's highs, which potentially could mean that, short-term, we’re at least bottoming out.
So this is a trade for purely technical reasons, because obviously we don't know what's going to happen with regards to tariffs etc. and there's still a lot of uncertainty out in the market at the moment. But from a technical perspective, it looks as if palladium seems to be holding at support.
And you can see here the low we made in Sunday trading, which I wouldn't read too much into it because it's, obviously, not when the market was open, but this, on the Daily Financial Bet, because it's an all-session chart here, had Sunday trading on there. But that low also came in where the June low of last year was made. So for those reasons and because we are now breaking above last week's highs, I would like to look go long palladium at 929 and have a stop-loss just below the low seen here on Sunday trading, so probably at 870.
So, this week's "Trade of the week" is to go long Palladium June Futures on the Daily Financial Bet at around 929 with a stop loss at 871 and an upside target around the 1000 mark.