When Platinum Group Metals are in a favorable position, analysts are looking at Palladium, notes Daniel Ghali, Senior Commodity Strategist at TDS.
Short positions may start to unravel
“Remember, there are scenarios where the large net short position held by CTAs could be almost completely unwound if prices continue to rally significantly. These risks to algorithmic positions are particularly acute in palladium, as we also note that discretionary traders have re-accumulated their epic net short position over the past few months.”
“In this context, pressure on CTAs’ positions could turn into pressure on discretionary positions, even as we acknowledge that discretionary traders have so far managed to withstand the pain in similar episodes in recent months.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
