Today’s topic is pretty straight forward. I am going to take a look at a potential opportunity for a trade in rare earth metals for a near-termed rebound. Beyond that near termed potential, there are some fundamental reasons that may or may not inspire a longer termed bullish stance on these three metals. That’s because the subjects in focus – namely Uranium, Platinum, and Palladium – all have some role to play in the current move towards clean energy. In a nutshell, it is likely that the push towards clean energy will get a bump from the current energy crises. And that probably means upside in the materials necessary for clean energy production. That means solar, nuclear, battery, and other applications. Well, that’s my thoughts – right or wrong. But remember, the charts don’t lie. We trade by the technical profiles, not by concepts or themes. Here we go:
A play on nuclear energy. There are a few producers to buy, or the commodity itself. This is the producer index ETF – which I like for the near-support zone it has entered. Obviously, its a buy in the low $20’s, a sell in the high $20’s and a mental stop loss below $19. Take my Online Technical Analysis Course if you want to know why I never use physical stops. BTW–the contract with the new promoter (I have mentioned this in the past) has been signed. As such, my online course will be going up in price significantly in the next couple of weeks from the current $100. Sign up now, or pay more later.
Platinum and Palladium are used in various aspects of battery and other power production. Below is the chart of the physical commodity ETF. Old resistance/ new support comes in at around $85. Sell target lies around $100. Stop below $85 – take a loss if that breaks materially. Simple as pie.
Ditto for Palladium. Support around $170. Resistance (sell target) in the low $200’s. Stop is a little tricky here. It has broken $170 in the past and rebounded. So, I’d still have a mental stop at $170 but a longer wait period before selling, just to see if it rebounded like it did last time that level was cracked.
I just conducted a webinar for the MoneyShow called Bull, Bear, Bottom & Bounce. It draws from my experiences in successfully navigating past bear markets. ValueTrend tends to shine when all around is dark – just check our performance here to see. We have a good system for navigating in a bear market, much of which is covered in the Online Course. The MoneyShow webinar will walk you through the steps I talk about in the detailed online course in a summarized fashion. I hope to post a link to the webinar recording next week or so.