 Good morning and welcome to the chart of a week video with me David madam today's date is Thursday the 6th of February 2020 and the time has just gone 1140 GMT on this week's chart of the week is an all-favourite of mine Palladium the metal has been on a very impressive run And the last number of months we saw a fairly sizable pullback in In late January kind of coincided with the fears that were that are rippled across all financial markets in relation to the Coronavirus crisis, which is largely hit China China's a major importer of various different metals China is a large component of global demand for everything from from vehicles to Luxury brands you name it so anything that the fear was if China's economy going to slow down That's going to impact everything essentially So if you take a look at the price action, we can see that Palladium has been on a massive run for quite some time. I Know a hindsight is 2020. I see what the saying goes, but if you take a look You know a series of all-time highs were achieved here in mid to late January We can see here that the long wick on this camp here denotes indecision Of course after after that we saw a fairly sizable sell-off and a pullback We've seemed to have found the base in around this zone Yesterday the market managed to create a gap to the upside now gaps don't always get filled, but they often do get filled And if a gap to the upside would suggest activity is bullish So we could be on the could potentially look to retest the recent record highs in around 2427 and if you go beyond that traders will then be you know, we'll be a new Record higher territory and tears we've been looking off for levels such as two thousand and fifty two thousand five hundred so one and so forth So what I'm going to talk to you about is I could we see a further valley in the price of palladium I could like I said tensions or fears rather in relation to what's going on in the health crisis in China have tapered off with our interbank intervention from the Chinese central bank recently overnight China announced plans to reduce tariffs on seventy five billion dollars worth of US imports That's kind of acted as a nice boost To the financial markets some of the fear factor in relation to the health crisis a taper off on the back of that so we could see Plainium from price push on higher from here So if you take out the reason all don't highs we could be looking at targeting 2450 and 20 or 2500 moves to the downside could find support from this area here with the graph where the gap was created Down towards twenty two eighty eight or potentially up to twenty one ninety one. It's kind of zone here Even if you go below that we find a bit of consolidation in around the 2,200 mark and even if you break below the lows of late January in a 2153 even if you break below that we still be in the upper trend and we're still miles away from this blue line here the fifth removing average which comes to the play at 2023 notice how that metric acted nicely a support in mid-November and also in late December So metric has been important in the past. It makes it more likely in view of importance in the future, although there are no guarantees now I took a quick look at what's going on on platinum because Platinum play them Often moving this in the same direction and one of the tenants of Dow theory is that the averages must confirm each other Which basically means if markets that are fairly similar Are some are high recently correlated if both markets are moving in the same direction You can be more confident that that is coming continue also there are guarantees So we saw here a decent price in the platinum price throughout late 2019 in January of this year It went on to hit a level which is nearly a three-year high not quite a three high The metal has subsequently pulled back found support from its 50 degree of the average and appears and it's pushed higher And it could be on its could be on on on on its way to retest its recent high So while Platinum is pushing higher you can be more confident that palladium is pushing higher as well Now if you are trading palladium or any of the financial markets It is worth noting that tomorrow is non-farm perils day. In fact, I myself. I'm hosting a Webinar tomorrow at 13 15 GMT It can be found on our website if you're gonna see them see markets calm under Insights under news and analysis. You'll see the webinars and events. It's it starts tomorrow at 13 15 GMT The figures come out at 13 30 GMT and also the video itself if you can tune in for the live Webinar the video itself will be posted to the insights section of our trading platform It'll also be updated to our YouTube channel as well Well, that's all from me this week Thank you for listening and have a good 20 week