Palladium had some very successful weeks recently, climbing up to above $830. Last week the precious metal fell by 20$, but it seems this was just another buying opportunity for the bulls. How high should palladium be expected to go? Are the bears going to return soon? Let’s take a look at the chart below, to see if there are any recognizable Elliott Wave patterns.
It appears the chart shows the common 5-3 wave cycle. The decline from $912 to $735 is a five-wave impulse with an extended fifth wave. The rest of the price action forms an unusual flat correction, where wave B is a triangle. If this is the correct count, the price of palladium could continue higher to the 61.8% Fibonacci level around $850. After that, the bulls must be careful, because a reversal to the downside is likely to occur. A reversal, which could be the beginning of a larger move to the south with the potential to lead prices below $730.
