Palladium futures may take a cue from the rest of the precious metals sector as the week progresses. Gold and silver both surged higher in Wednesday's session while palladium touched a major support level after setting a new multi-month low on the chart. Such a divergence is often temporary, and palladium's price action shown here on the Autochartist 240-minute time frame suggests a turn-around is highly possible.

The swing low reached the neckline of a broad Head and Shoulders chart pattern. With the close near $730.00 per ounce setting a new low at support, traders will be watching for a spill-over effect from gold's $40 per ounce rally on the day.

If palladium continues trading lower through the neckline it would be seen as quite bearish and also trigger a downside breakout from the pattern. A more likely bounce higher from this level would hold the Head and Shoulders chart pattern intact, setting the stage for a rally to the shoulder-line resistance near $765.00 per ounce. If achieved, a continuation of the rally from there would generate a buy signal on the Autochartist completed pattern platform to indicate today's price may be a major long term low for this market. For further information on this and other Autochartist products, visit our website at

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