In our previous forecast of palladium we suggested, that the precious metal is probably in the middle of an A-B-C zig-zag correction to the upside. We thought so, because there was a complete five-wave decline before that. The Elliott Wave Principle states, that every five-wave sequence is followed by a three-wave correction in the opposite direction. On the next chart you will see how palladium looked like on October 9th.
Today, more than two months later, it seems we were right it was an A-B-C correction. However, as you will see on the next two charts, instead of a zig-zag, it appears to be a flat. In addition, the price swings offer two options for a flat correction scenario. According to the first one, it is an expanding flat with an ending diagonal in the position of wave C.
The second count includes a strange type of flat correction, where wave B takes the form of a triangle. As you will see, it does not change the forecast at all. The only difference is the labeling.
Recommended reading: A Confusing Type of Flat Correction
Both of these counts suggest for lower palladium prices ahead. Regardless of how you name the flat, it is still just a correction and corrections are supposed to be fully retraced. In other words, the bottom at 730 should be taken out, when the larger downtrend resumes.
