My Precious II
Back in August of last year in my 8-23 blog post (“My Precious”) I wrote about the potential breakout in palladium above near-term highs with a target back to the 2001 highs at $1100.
On Jan 8th the price of palladium closed at $1105 (providing a nice 16% gain in 5 months), right where the breakout told me to expect it to go. As you would expect, that prior high is acting as resistance and price has pulled back slightly and begun a sideways consolidation.
Keep in mind that just because it has reached its target does not mean it’s done. But, if I were in this position (I am not), because it had reached its target, I would be taking at least ½ of my position off the table, locking in those profits and looking for another setup providing a risk:reward ratio of 1:3 or greater.