While Gold and Silver futures continue chalking up steep losses for the month, the Platinum group metals seem to be defying gravity, and have actually managed to post gains on some of the heaviest selling days in the rest of the precious metals complex. This divergence may be coming to an end soon, however, as bearish technical indicators begin to creep into both Palladium and Platinum.
Palladium futures have held steady at multi-year highs above $800 an ounce, and the recent sideways price action has formed a 3-Point Retracement bearish chart pattern- shown here on the 240-minute time interval.
This chart pattern will need to confirm by maintaining trading levels below the D point, which marks a potential swing high for the market, and generates the Fibonacci retracement levels indicating targets for a downside correction.
If Palladium keys off weakness seen in Gold futures, and the correction ensues from this level, it is likely the market will test key support provided by the C point swing low, near $776 per ounce, with a possible extension as low as $749 on a breach of that Fibonacci level.
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