Palladium Suffering From Big Selling!Palladium saw a 93% rally from the August 2018 low to the March 2019 high and with every
big move we can expect to see price become exhausted and form a pullback, reversal or consolidation.
In this case, we saw a period of consolidation which appeared in the form of a cup & handle pattern.
A cup & handle in an uptrend is a strong continuation pattern but only if the neckline is broken.
That did occur on September 19th 2019 and since then we have seen a 13% rally.
The pattern of trends followed by pullbacks continues and we are currently experiencing just that.
The current pullback has moved down 122 points in just 2 days and is currently finding support at the 50sma.
To confirm a continuation to the upside we want to see a break and close
above the October 30th high at $1,823.
If price fails at the current support area then we have the resistance turned support level at $1.615
which is a major support area.
We need to give price some time and space to move and as the overall trend is up,
the bias is for a continuation to the upside.
In the meantime, we have to see if price will follow the momentum and continue trending for some time.
See below for more information on our trading techniques.
As always, keep it simple, keep it Sublime.
