Hello fellow traders.  Palladium Futures ( $PA_F ) is another instrument that has given us nice trading opportunity lately . As our members know the commodity is showing impulsive bullish sequence.  We recommended members to avoid selling the commodity and keep on buying the dips in 3,7,11 sequences when get chance. In this technical blog we’re going to take a quick look at the charts of Palladium published in members area of the website and explain the Elliott Wave structure and trading strategy.

Palladium $PA_F Elliott Wave 1  Hour  Chart 4.20.2021

Palladium remains bullish against the 2590.1 low .  Pull back looks incomplete at the moment. The price hasn’t reached equal legs from the peak yet. The Commodity can give us another leg down toward 2755.8-2718.43 area. We don’t recommend selling and favor the long side.  The main trend is bullish we expect to see at least 3 waves bounce from the marked blue box zone.  As our members know Blue Boxes are no enemy areas , giving us 85% chance to get a reaction.

You can learn more about Elliott Wave  Patterns at our Free Elliott Wave Educational Web Page.

Palladium $PA_F Elliott Wave 1  Hour  Chart 4.21.2021

We got leg down toward buying zone: 2755.8-2718.43 ( blue box area) . Buyers appeared there as we expected. The commodity found buyers and giving us nice reaction from the area. Current view suggests wave 4 red pull back ended at the 2721.7 low. We would like to see further extension higher and break above 3 red peak to confirm next leg up is in progress.

Palladium $PA_F Elliott Wave 1  Hour  Chart 4.21.2021

Rally continued and we got break above 3 red peak, confirming next leg up is in progress. The commodity now remains bullish against the 2721.73 low. It’s expected to keep finding buyers in 3,7,11 swings against the 2721.73 low in first degree.

Keep in mind that market is dynamic and presented view could have changed in the mean time. Not every chart is trading recommendation. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room.

Palladium market continues  to be in short supply for 9 straight years. The gap between mine supply and consumption in 2020 was around 1 million ounce of palladium. The chart below shows the deficit from 2011-2019

Palladium is used by automakers in catalytic converter manufacturing to clean greenhouse exhaust fumes. COVID-19 pandemic in 2020 further exacerbated the deficit as it caused the mining output to drop by 13%. While mining supply should rebound this year, limited new supply should still cause the deficit. The new Biden administration will also put focus on green energy technology, which may mean tighter regulation on car emissions. This could in turn increase the demand for the metal in catalytic converter in years to come.

Palladium (PA_F) 4 Hour Elliott Wave Chart

Palladium still remains in correction after forming the high on January 5, 2020 at $2536.5. Structure of the decline from there looks corrective and the internal subdivision is unfolding as a double three Elliott Wave structure. Down from January 5 high, wave ((W)) ended at $2341 with internal as another double three in lesser degree and bounce in wave ((X)) ended at $2465.5. The metal has scope to extend lower in wave ((Y)) to reach 100% – 161.8% Fibonacci extension of ((W))-((X)) towards $2127 – $2268. This area, if reached, can see buyers for 3 waves bounce reaction at least.

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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.

PA_F 9.16.2020 1 Hour Asia Elliott Wave Chart

 

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In this technical blog, we are going to take a look at the past performance of Palladium, 1-Hour Elliott wave Charts that we presented to our members. In which, the cycle from 8/02/2019 low showed a higher high sequence in an impulse structure with the right side up called for more upside to take place. Therefore, our members knew that buying the dips in 3, 7 or 11 swings remained the preferable trade. We will explain the Elliott wave structure & buying opportunity our members took below:

Palladium 1 Hour Elliott Wave Chart

Palladium 1 Hour Elliott Wave Chart from 10/23/2019 London update. In which the metal showed an impulse rally where wave 3 in red ended $1750 high. Down from there, the metal made a wave 4 pullback which was expected to offer buying opportunity in 3, 7 or 11 swings looking for more upside. The internals of that pullback unfolded as a double three structure where wave ((w)) ended at $1712.7 low. Wave ((x)) bounce ended at $1746.2 high. Wave ((y))) was expected to reach 100%-161.8% Fibonacci extension area of ((w))-((x)) at $1708.89-$1685.69 extreme area. For a potential long side looking for more upside or for 3 wave reaction higher at least.

Palladium 1 Hour Elliott Wave Chart

Here’s Palladium 1 Hour Chart from 10/29/2019 Asia update showing reaction higher taking place from the blue box area. Suggesting that metal made the last push lower within 100%-161.8% Fibonacci extension area of ((w))-((x)) at $1708.89-$1685.69 as expected. And offered our members a buying opportunity at the blue box area as expected. Allowing members to create a risk-free position shortly after taking the long position from the blue box area.

Keep in mind that the market is dynamic and the view could change in the meantime. Success in trading requires proper risk and money management as well as an understanding of Elliott Wave theory, cycle analysis, and correlation. We have developed a very good trading strategy that defines the entry. Stop loss and take profit levels with high accuracy and allows you to take a risk-free position, shortly after taking it by protecting your wallet. If you want to learn all about it and become a professional trader. Then join our service by taking a Free Trial.

This week we saw Palladium rallying to new all time high and touching the $1700 psychological barrier. At Elliottwave-Forecast, we told our members last week that any dips should be viewed as a buying opportunity and we highlighted the area where we expected buyers to appear with a blue box. Blue boxes on our charts  are high frequency areas and are expected to produce 3 waves reaction at least, we also call them no-enemy areas because in these areas, both buyers and sellers agree in the direction of next move for 3 swings at least. Let’s take a look at the chart of Palladium (PA_F) from last week where we expected it to drop towards the blue box and then turn higher from there.

PA_F (Palladium) Elliott Wave Update 10.7.2019

In the chart below, we called red wave 3 completed at $1672.10 and decline from $1672.10 to $1618.10 was in 5 waves which we labelled as wave ((a)) of the red wave 4. Rally from $1618.10 – $1659.40 was in 3 waves which we labelled as wave ((b)) and we looked for another 5 waves lower in wave ((c)) to complete wave 4 pull back. Blue box between $1605.04 – $1571.45 was the area where we expected wave 4 to complete and buyers to appear to either resume the rally in Elliott Wave 5 or produce a 3 waves bounce at least.

Palladium (PA_F) Elliott Wave Update 10.10.2019

In the chart below we can see that Palladium continued lower as expected toward the blue box. However, the decline from $1659.40 was not in 5 waves so we have changed the structure of wave ((b)) to a triangle. We can see that price reached the blue box around $1605 and bounced strongly. Buyers were waiting in the blue box as expected and produced the rally. Reaction higher quickly took it back above 50% Fibonacci retracement of the decline from $1659.40 peak allowing longs from blue box to eliminate risk on the trade.

 

We took this long in our Group 2 Live Trading Room and it already reached our target at $1687.5 which is inverse 123.6 Fibonacci extension of wave 4 drop. Below is the journal we sent to the members and also the video clip