This chart is again more Gann Fan
study. The chart is composed of more fans than I care to explain. However , the important thing to be drawn from this chart is the purple band. I know I could just draw a trend line
and be done with it but the fans really give a visual representation of what a trend line
really is and also help one judge the strength of that trend line
. The purple band ( trend line
) is very wide and quite strong. After palladium
price fell below the purple band mid 2012, it has tested the purple band twice and failed twice. We are now setting up for a third test of the purple band. Fail again and the trend will most likely be down. Cross it and the price may go much higher.