Palladium getting ready for another bearish wave
|Today we’re analysing Palladium, which may not be the most popular metal to trade but definitely is worth your attention, as its movements are very technical.
Since March, Palladium is in a downtrend, which initially was very rapid but most recently flattened out a little bit. What is worth noticing is the way that Palladium is handling corrections. From this chart, you could actually teach people proper technical analysis.
So, the first correction was a triangle that ended with a bearish breakout. The second correction (red lines) was similar but a bit smaller – so a pennant but also ended with the same outcome a drop. The third correction was, a triangle as well (orange) which also resulted in a drop. The fourth correction is still ongoing. The formation is a flag (blue) and just like the three precious patterns, it promotes a breakout to the downside.
As long as it stays inside the flag, the price has all the rights to climb slightly higher. That’s the purpose of a bullish correction. Only if Palladium breaks the lower line of the flag, we get a proper sell signal. There’s a high chance this will happen, so stay sharp and get ready for a highly probable drop in the nearest future.
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