Palladium Sets Up Another Double Top Pattern
Is this Double-Top setup in Palladium another warning of a potential downside price move? Back in April 2018, we issued a Double-Top pattern warning in Palladium which preceded a downside price move of nearly 28%. We believe this new Double-Top pattern may prompt a downside price move of nearly 20% – targeting the $1240 level.
April 18, 2018: PALLADIUM RALLY DRIVING OTHER METALS TO MOVE?
This Weekly Palladium chart highlights the YELLOW Double-Top pattern formation that we believe may prompt a new downside price move. Our expectations are that any new price weakness in Palladium will push prices down to the BLUE Fibonacci projected target level near $1240. Additionally, should price break through the $1240 level, the next target levels are $1000 and $1060.
Palladium is a component that is related to industrial output and economic output for many industries; Automotive, Technology, Medical Devices and Equipment, and many others. A decrease in demand for Palladium would indicate a decreased demand for a broad swath of global industry leaders.
This would likely result in a decreasing or weakening global economic outlook and, potentially, be an early warning sign that the global stock markets are about to enter a period of extended price weakness.
Pay very close attention to the $1450 to $1475 level in Palladium. These levels are the most recent support levels from previous triggers. Price weakness below these levels would be a strong indication that Palladium may continue to move lower targeting the $1240 level or lower.
Look at my trend analysis chart for Palladium. Yes, it is in an uptrend but as of the last trading session it is now trading at an extreme overbought level which typically means sellers should step into the market at any time.
See my current trend and trade signals for the SP500 index here.
Now is the time to plan and prepare for these incredible price swings in the global markets. The next 18-24 months are certain to present technical traders with countless opportunities for success with these bigger price moves.
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