 Good afternoon and welcome to the chart of the week video with me David badm Today's date is Thursday the 17th of October 2019 and the time has just gone 1245 British summer time And this week's chart of the week is one of my all favorites palladium The metal has hit yet another all-time high today Which is quite remarkable considering that What's going on in global financial markets? There aren't many financial markets or indeed commodities that are hitting all-time highs and yet palladium I've seen a string of all-time highs In the past year or so and today is yet another example of one of those all-time highs So it really does say a lot about the sentiment in the market when I say another yet another all-time high If you take a quick look at the MACD indicator and the MACD Instagram We can see that positive momentum is pushing higher So the increase in price for seeing on the terms of price action is being confirmed by this The steady increase in positive momentum. So it's very clear that the momentum is with the buyers So if you do manage to get a press on higher from here or currently trading in around 70 34 If you must press on higher from here, we could be looking at targeting 1800 Next week and if you know big ish number to look out for to the upside So that could be the medium term target should look in a wider upper trend continue If you do see any pullback in the metal that we could find since board come from this region here in around 1700 And you know, it's one of it's it's an area of a consolidation In the past 48 hours, but even if you drop below 17 numbers, we could be looking at heading back down towards This area here in around 1675 1670 there's quite a few Quite a few areas of resistance as the market was pressing higher And it's only really if you kind of take out this area here down one kind of 1600 It's a big it's a big number but on top of that a few occasions that area acted as support So if that area that actually support the past and makes it likely that it could act as support in the near term So the big picture is The wider the wider view is very much to the upside But what I want to find my interesting about this chart is that we could be in for a bit of a near term correction We could be in for a bit of a pullback and I'll tell you why because if you take a look at the price action here This blue line here is the 50 moving average at some time of the time the market goes on a massive run Creates new all-time high to send it's very very very bullish and the gap between the price action and 50 moving average gets gets gets quite stretched and every now and time the time Marcus don't move the straight lines every Not the time you are going to see a bit of a pullback. So take a look along here When the market was pressing higher in in late 2018 heard and into in the late 2018 We can see that the market wasn't too far away from this 50 moving average And then when we had a period whereby the market shot off from the well way and pulled well away from the 50 moving average We did correction similar situation here And now I'm not not a fairly similar scenario here We're by the very size of a gap between the price action and the 50 moving average which and then not too long after that We saw the market move lower and now we're in a similar position as well whereby As the market was gaining ground from the sell-off in August It was not too far away from the 50 moving average, but the gap between the two is widening So that's just okay. We could be in for a bit of a correction Could be in for a bit of a pullback and if you take a look at today's candle obviously more kind of halfway through the the trading session on the 17th of October 2019 But what we can notice a little straight away is that the body of the candle which is this is a is quite It's very very small and the the the wicks are quite long So that is a classic example of a long wick and on a candle to note indecision Not to say there's no guarantees that we're definitely going to have a reversal or a change of price action But just indecision and obviously we're going to marry it up the fact that the markets at no time high The gap between the 50 moving average and the price is now quite stretched We could be in for a bit of a pullback in the near term Depending how this candle actually gonna place out today. This could just keep on that for potential formation So what this could turn out to be it could turn out to be a spinning top It's kind of a textbook example of it here. The market was pushing higher We quite a long body on the it would be quite a long wicks on this particular candle But notice how the other body of the candle itself the main portion of it is actually quite small Followed by a move to the downside so the possibility depending on what we're about The the price actually finishes up We could see something similar here whereby the price the closing price and the open price aren't too far away from each other And they're gonna base in around the center of the candle that could be a sign that the market is about to am is about to turn Over on itself But that would need to be confirmed by then that she's seen the price actually edge edge then a bit lower Obviously if you're going to set another all-time high tomorrow We can then discount that theory and we can look to kind of potentially continue on in the wider upward trend If you are gonna be trading play them or quite frankly any markets next 24 hours Just please be mindful tomorrow that we have GDP numbers off from China Obviously China has been central to what's going on at the financial markets racing in terms of China slowing down and And also the US China trade talks That's all for me. Thank you very much