Pall - Wont you be my friend?

Ever since palladium broke out of its multi-year triangle pattern at the start of March (see chart below) I was an interested buyer.

The naysayers and fundamentalists were presenting a plethora of reasons why it was not going to work out or only be fleeting, but price told us it was worth taking a shot. Interestingly enough for the first half of 2014, it is the best performing precious metal (if you consider it precious) and third best performing base metal (if you consider it base). It goes without saying its 20% return crushed that of stocks and bonds.

As with other commodities it is hard to invest outside of futures contracts. Palladium does have an ETF which tracks the price reasonably well (PALL) but is pretty thinly traded so be careful. Looking ahead, I see further upside as the moving averages are all bullishly configured and we are in a strong uptrend as price is making higher highs and higher lows.  While all looks very good at this juncture we have the possibility of a double top being formed so vigilance is required.

For those that missed the boat, I would not chase it here. For those who caught it, congratulations and watch the lower blue trend line and open gap for areas for support or change in direction inflection point as a place to take profits.