Palladium - Potential Head and Shoulder Pattern
|The Head and Shoulder pattern is possibly the most popular and common technical reversal formation. In this setup, we have identified the potential development of an H&S structure.
Palladium, in its hourly chart, is forming a potential head and shoulders formation that could take this precious metal to the bearish side. Currently, the price is moving in what could be its second shoulder in progress.
A short trade will trigger if the Palladium breaks and closes below $1,921.07 per ounce.
Our conservative bearish target is located at $1,890.14 per ounce. An extension of the downward movement could drag Palladium to touch the $1,861.46. The last bearish technical target of this Head and Shoulder setup is placed at the $1,837.26 level.
A protective stop level should be placed at $1,957.82 per ounce.
Trading Plan Summary
Entry Level: $1,921.07.
Protective Stop: $1,957.82.
1st Profit Target: $1,890.14.
2nd Profit Target: $1,861.26.
3rd Profit Target: $1,837.26.
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