Following The Thin Blue Line (Palladium)

When Russia's largest palladium producer (and one of the largest in the world) reported recently that some of its mines had flooded and therefore palladium product would fall significantly, pundits called for palladium prices to shoot in one direction - through the roof and onward to the moon.

And while it is true that prices have risen (closing Friday at $2,676.10), there has been more bobbing and weaving than straight line gains.

Here at Excalibur Pro we look at a host of different technical indicators and right now, one of them (the Markov Process) looks to indicate that palladium might be in a holding pattern. What we note in the accompanying chart is that recently when the Markov State 1 crosses above Markov State 2, price gains follow, Right now, State 1 for palladium is below State 2 but has been trending toward a cross. Keep an eye out for that trend.