CTA trend followers are increasing their long positions in Palladium as price action triggers bullish trend signals, notes Daniel Ghali, Senior Commodity Strategist at TDS.
CTAs are ready to sell at scale over the next week
“Fear is the operation, given that the US has asked G7 nations to consider these inclusions, but the EU has already stopped considering them in recent years. Although with the flows of recent weeks otherwise muted And with the US election season underway, there are ways for momentum to persist in the short term.”
“Interestingly, however, the scope for subsequent CTA buying activity is limited, with a large surge over the next week only likely to trigger small-scale buying by algorithmic traders. Meanwhile, the price action “has been as favorable as it can be for the Platinum markets, adding a few days of delay to the potential large-scale selling activity of the trend-following community.”
“Still, under all reasonable price scenarios, CTAs will sell off in large numbers over the next week. Even a modest reversal could be enough to catalyze massive selling activity before the weekend.”
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.
