How huge was that red palladium candle? It was so strong it bent all the long term EMAs! I'm sorry to say I wasn't in the move...
The 3day EMA has been running with the lower BBand since the top of that big red candle, and both lines have crossed all the long term EMAs. It looks really significant but I'm not sure what it means! Might be a good opportunity for the bracketing strategy in case it shoots back up today.
Hi. I reckon it means the average price over the last three days has been on the extremes of the low compared with the last twenty days.
Where would you reference for a bracketing strategy? It looks like the only thing providing support at present is the 100SMA. Historically palladium seems to respect the 200 day SMA more that 100SMA so I'm not sure how strong that is.
I'm using the support/resistance lines created from the previous highs at around 1390 ish and 1290 as reference zones because they are similar to the 23.6 and 38.2 Fib retracement levels.
I actually put in a small short position just now with view to take profits around $1290 if it goes that way. Stop loss at $1363 just above a bit of an area of resistance on the 10 minute chart. I went short because there is a lot of momentum in the downward movement and price hasn't hit any real resistance to slow it up.
Whats your plan ChrisB?
Ha Ha. I didn't really have a plan Nathan- except to wait and see. It's uncharted territory so I don't have any significant S and R lines. I've been playing around with channels but nothing meaningful. I was pretty much just thinking of hedging my bets as it seemed likely the price action would move back up from outside the lower BB line but other indicators were pointing towards a short.
Thanks for the tip about looking at the 100 SMA- I see that it really has acted as support this afternoon and price has moved back up to 1359 ( but still outside BBand). I will wait and see if it gets a little more strength in its upward trajectory.
Well my short got stopped out so there goes that theory. Now I will wait and see when it gets to the S/R zones. I see Silver had a nice bracket opportunity there earlier today. Do you have any other positions in place at present?
