Jump to content

Nickel, Silver and Palladium in 2019

Recommended Posts

I read a recent article that supposedly, 2019 is going to be a good year for these particular metals. Nickel and Palladium due to their use in electric car batteries and silver for it's use in solar energy. Palladium is certainly hot and has been on the up. Nickel, not so much but does that mean it's a good time to buy before it heats up? Silver has already been identified by @TrendFollower as a possible long. I have already been long on Palladium but got stopped out at 1229 after a little profit. Will probably go back in if my set up comes back on line. Any one thinking about trading these at the moment?

Share this post


Link to post

@Nelsy-Boy,

Palladium has been ahead in its rally compared to other metals. The reason why I am trading Gold and Silver is because their margin requirements are a lot lower than Platinum and Palladium. Palladium has the highest margin requirements on IG's Spread Betting platform. I have capital tied up in other trades which also hindered my ability to trade Palladium. Also Gold and Silver are bigger markets with far more volume and far more liquidity. Having said that the better trade to date out of the four has been Palladium without a doubt so you have done very well in not only identifying Palladium but actually trading it. So well done on that account. Palladium is trading above its 200, 100, 50 and 20 day moving averages. I would not exit Palladium until there is clear trend reversal to the down side. One must let their winners run and not exit too early. It seems the volatility has stopped you out too early. Setting effective stop losses is extremely difficult when trading a strong trend which is very volatile. You could consider setting your stop losses around when the price goes below its 50 day moving average when in a long position as this may give you more room and flexibility. This would increase your risk of increasing your losses or you may wish to consider a trailing stop when in a profitable position but slightly wider to avoid being stopped out. 

The price action on Nickel which is a base metal does not support a 'long' position at this moment in time for me. It is trading below its 200 day, 100 day and 50 day moving average and is a 'whisker' above its 20 day but still trending downwards. So I personally would not initiate a long trade until there is a clear trend reversal. One could argue that if anything Nickel could continue to go down so may be a short term 'short' trade.

Understanding the fundamentals behind why commodities move is very important but you may find that there tends to be a disconnect between the fundamentals and prices. Supply and Demand play an important role. I am not a fan of Gold at all. However, Gold is trading above its 20, 50, 100 and 200 day moving averages and making 'higher lows' and 'higher highs'. I try to remove my emotion and beliefs when trading and the price action supports my trade in Gold and Silver at present. This could change at any point but my decision was based purely on price behaviour even though I am not keen on Gold as an asset. I am trying to trade with the trend and with the momentum. I am not trading Gold and Silver on fundamentals at all on this occasion. It is purely a price action trade. I believe Silver at some point push on and will start to catch up with Gold. 

No one knows if 2019 is going to be a good year or bad year. I have absolutely no idea. I just try to trade based on the current price action as that is all I can go on.

  • Like 1
  • Great! 1

Share this post


Link to post

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • IG ISA Season

  • Member Statistics

    • Total Topics
      6,391
    • Total Posts
      28,414
    • Total Members
      37,298
    Newest Member
    F_erret
    Joined 21/03/19 09:20
  • Our picks

    • APAC brief - 21 Mar
      Market action proves it again: this market hinges on the Fed: The US Fed has proven itself as the most important game in town for traders. The FOMC met this morning, and lo-and-behold: the dovish Fed has proven more dovish than previously thought; the patient Fed has proven more patient that previously thought. Interest rates have remained on hold, but everyone knew that was to be the case today. It was about the dot-plots, the neutral-rate, the economic projections, and the balance sheet run-off. On all accounts, the Fed has downgraded their views on the outlook. And boy, have markets responded. The S&P500 has proven its major-sensitivity to FOMC policy and whipsawed alongside a fall in US Treasury yields, as traders price-in rate cuts from the Fed in the future.


      The US Dollar sends some asset classes into a tizz: The US Dollar has tumbled across the board consequently, pushing gold prices higher. The Australian Dollar, even for all its current unattractiveness, has burst higher, to be trading back toward the 0.7150 mark. Commodity prices, especially those of thriving industrial metals, have also rallied courtesy of the weaker greenback. Emerging market currencies are collectively stronger, too. This is all coming because traders are more-or-less betting that the Fed is at the end of its hiking cycle, and financial conditions will not be constricted by policy-maker intervention. Relatively cheap money will continue to flow, as yields remain depressed, and allow for the (sometimes wonton) risk-taking conditions that markets have grown used to in the past decade.
        • Great!
        • Like
      • 0 replies
×
×