Pd down to $754 from its high of $775 recently, no new updates to keep the new investors piling in. PAL had 2 days in a row of closing lower and is touching that upward trending support line. Since Pd and Au are the only actively changing and perceivable variables (both heading south) PAL should go along with it. The only good thing and reason I mention Au is because a low Au price may prompt a sale of Vezza (and other gold assets) near term at a lower price. Either way with metal prices like this, PAL should break through that support line I mentioned several times this week and lead to a retracement back towards the mid 1.70s today looks possible in my opinion.
The Market Makers, Goldman and JPMorgan have been destroying the whole mining index for over a year.
I expect them "all" to bottom in Mach with the rest of the coming market correction. Everything is a trap until then.
Good thinking and PAL should retrace and already has from 1.95+...Palladium is slowly going down now at $750+ but should go lower around $720/$730 (MA(32) is $729 RSI is still way too high) to be able to rebound and keep the trend to $800.
I have been surprised by PAL strength lately so...and a up day is still possible although unlikely.
I believe PAL should retrace around 1.75/1.60 and this is where I will accumulate again. A low at 1.55 is not out of question before earnings.
So far, PAL has traded pretty safely and is staying at the 200MA(1.83) as a weak support.
We will see...
The big unknown is now the earnings effect? We know that PAL will have decent earnings much better than the Q3/2012 but we know now unfortunately that PAL is preparing a write off non-cash related to its gold assets and probably some lackluster news regarding Vezza? It will raise the likelyhood of a new financing down the road imho in the Q2/2013 and some investors may turn bearish on PAL until September when the shaft will be 100% operational.
It might be holding that 200MA at (1.83) but it sold off to the 1.78 level twice already, in my opinion it looks like there are still some traders holding their bids at that line but without any motley fool pumping I think that the number of those willing to pay up for PAL is drying up, we have a strong resistance at the 1.98 level and as the 200MA moves closer to that it is clear to me that the risk/reward ratio is getting to great for me to risk my money here. If you want to buy and hope for a 0.05 gain per share it is your move, but I would rather not be the guy holding the bag when this turns short term.
We already know operating numbers pretty good, but don't know impact of writeoff. Also, one should always, always always figure out what is NOT said with these cowards/amateurs/liars/thiefs versus anything that is said.