Tuesday, July 8, 2014

Palladium and SPX cycles

Palladium ($PALL) is in a clear uptrend after breaking out from a consolidation pattern early this year which is in line with our prediction for significantly higher prices of palladium in the following years (http://goldenopportunitytrading.blogspot.co.uk/2014/03/rising-tension-between-west.html).Palladium relative performance to SPX seems to follow an aprox 6 year cycle.Also there seems to be an interesting symmetry in this chart(pall:spx).If symmetry does truly exist we expect a relative outperformance of palladium over SPX until late 2017- early 2018.

Zooming in the PALL:SPX chart we notice that 
PALL:SPX is currently in a downtrend (SPX outperformance). However price of PALL:SPX already pierced 55 week EMA during late 2012 early 2013 and again
this year (April until now). We believe that Palladium soon will begin outperforming SPX.

Blue Line (very bullish scenario)
Green Line (Bullish scenario)