Shorting Palladium Futures

Palladium is in a strong downtrend right now. In fact, in the Trend Following Market Trends Barometer, it is the strongest trend with a value of over 70%.

We are opening short positions at market price with a very strong risk management metric - as always - aiming to surf the downtrend and lose only 0.5% of our portfolio value if there is a pullback. Our target is around 1505, but the exit will be through volatility and trailing stops.

As we can see, the trend has an RSI of 39.70 on the weekly chart. It is below the 210, 70 and 14 SMA's, and has broken a trend line support. There are opportunities to follow the trend.

We can open more positions further if the trend remains bearish and close them on a percentage basis if sharp pullbacks occur. Again, it depends on volatility and trailing stops. The system is automated.


Product. Palladium futures (NYMEX). No CFDs or other OTC derivatives for now.

Position: Sell, market price.

Stop loss: around 1 800 (trailing stop, we can re-enter if there is a pullback).

Target: Around 1 500 (we won't manually close, the TL stop will).

Resizing: We can open more positions if the trend is strong.

Risk: High.