Forecasting The Rally Higher For Palladium
In this blog, we are going to take a look at the Elliott Wave chart of Palladium (PA_F). The 1 hour NY Midday chart update from September 3 shows that wheat has ended the cycle from August 12 low as wave (3) at 2415 high. Elliott Wave theory dictates that 3 waves pullback should happen afterwards before the rally continues. Therefore, Palladium is expected to do a pullback in wave (4), which could unfold as a zigzag correction or double three correction.
PA_F 9.3.2020 1 Hour NY Midday Elliott Wave Chart
The 1 hour NY chart update from September 9 shows that Palladium has ended wave (4) pullback as a zigzag correction. Down from wave (3) high, wave A ended at 2303 low. Wave (B) bounce unfolded as a flat and ended at 2341.40 high. The metal then resumed lower and ended wave C at 2255.30 low. This final push lower also ended wave (4) in higher degree. As long as that low stays intact, then the metal can continue to resume higher. However, the metal still needs to break above wave (3) high to confirm that the next leg higher has started. Otherwise, wave (4) could still unfold as a double three correction before upside resume again.
PA_F 9.9.2020 1 Hour NY Elliott Wave Chart
The 1 hour Asia chart update from September 16 shows that Palladium continued to extend higher from wave (4) low. The rally has broken above previous wave (3) high, confirming that the next leg higher has already started and wave (4) low is in place. While above 2255.29 low, dips in 3,7, or 11 swings are expected to find support for more upside.