Palladium is used in the automobile industry and the recent uplift in car sales has been good news for the metal. The launch of Palladium ETF last Friday and the fact that it is a very rare metal doesn't hurt either! There are not too many Palladium plays out there, PAL and SWC being two that I know of.
PAL had a breakout day, as I had suspected in my post yesterday, on rather good volume. The chart still looks good. Is it overbought? Of course, it is overbought!! But remember, indicators such as RSI and stochastics work only in range-bound markets and should be ignored for breakout stocks. Let the trend be your friend and enjoy the ride while it lasts!
SWC had a pullback today in spite of Palladium moving higher. Notice that it was on lower volume. If Palladium keeps moving higher tomorrow, I expect SWC to make up for the decline in price tomorrow.
Good Luck trading!
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