In our previous analysis of palladium we gave you two bearish scenarios, both of which suggesting for a reversal in the zone of 820. Today, one week later, the precious metal seems to be confirming the expected change of direction.
As the chart shows, the price of palladium formed a top at 822 and then declined to 774 so far. The important thing is the wave structure of this decline. It looks like a very clear five-wave impulse. According to the Elliott Wave Principle, impulses show the direction of the larger trend. This means, that palladium should head south again as soon as the current three-wave retracement is over. With the bigger picture outlook in mind, 730 is still on the table.
