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.
I made good profit on the last trend. Have a position now as well. Impatiently waiting for price to jum into a new box....
Sublime_Trading
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@Lukasz-Grzesiak, thanks for the comment and apologies for the late reply. Excellent, this performed well in the past so great to see you capitalised on that. The current trend is also looking good and the daily 50sma has held so far as support on the current pullback and close to breaking out. We may not have to wait that much longer to add another position according to our compounding rules.