Palladium and Platinum ETF are two very specific commodity exchange traded funds. Palladium and platinum are often ranked as precious metals but they also have industrial usage. These two palladium and platinum funds are two options to place exchange traded commodities into your portfolio or into your trading strategy.
I personally do not track palladium and platinum exchange traded funds on a daily basis as I prefer to trade other commodity etfs like gold or silver or oil etf.
But I monitor platinum and palladium from time to time to check if it is possible to find some good trading opportunities with these specific commodities.
Platinum etf and Palladium etf description
Platinum exchange traded fund is issued by ETF Securities Ltd. This provider creates several precious metals exchange traded funds for physical exchange traded commodities.
ETFS Physical Platinum Shares with ticker PPLT is designed to offer investors a simple and cost-efficient way to access the precious metals market. PPLT is intended to provide investors with a return equivalent to movements in the platinum spot price less fees.
Here is a chart of PPLT
Another very specific option for exchange traded commodities is Palladium ETF. It is again provided by ETF Securities Ltd.
ETFS Physical Palladium with ticker PALL is designed to offer investors a simple and cost-efficient way to access the precious metals market. PALL is intended to provide investors with a return equivalent to movements in the palladium spot price less fees.
Here is a chart of PALL:
ETF Trading strategy basics for these commodity exchange traded funds
I use technical analysis of stock charts for my ETF trading decisions. I like to use relative strength analysis combined with a support and resistance concept.
I am able to decide if there is any tradable opportunity in any type of asset class with these concepts. The same system for analysis could be applied also for ETF Trading strategies with commodity exchange traded funds like Platinum ETF and Palladium ETF.
First analysis should be done with a broad precious metals fund – I use DBP.
The actual situation turned bearish during the last days. This means that the basic decision is that I do not plan to be bullish and buy precious metals these days. I would like to be neutral (in cash) or short these exchange traded commodities.
Lets look at details on the charts of Palladium and Platinum ETF.
Another point which can be taken from stock chart analysis of the charts above is that both PALL and PPLT are much weaker than general precious metals fund DBP. It can be observed by checking the 200-day moving average position. The price of PALL and PPLT is already below this very important long-term moving average.
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