Along with the rest of Platinum Group Metals, Palladium is still holding steady near multi-year highs, with a significant floor of support now established at the $800 per ounce level. As Gold and Silver gradually recover from relative weakness, both Platinum and Palladium Futures have established bullish chart formations which point to a possible resumption of their rallies to new highs.
The Palladium futures have formed a very orderly Triangle chart pattern, shown here on the long term 240-minute time frame. The pattern has a 10-bar reading for Initial Trend, with 8-bars showing for overall Quality, and the pattern has not yet broken out in either direction, but is likely to do so this week as it approaches the apex of the Triangle.
The short-term bias is for a minor correction to the bottom support of the Triangle, which would test the market for possible buying interest at that level. However, a breach of either the upper resistance or lower support would signal a technical breakout, and given the considerable length of time and price range of the Triangle's development, the projected move calculated from that breakout is likely to be a dramatic move.
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