The palladium bears have attacked, and I’m sure bull blood will flow. Right now palladium is sitting at the 50-day-MA. The 200-day MA is far down at the $1150 price level. The big question is, “Is this a short blip and the bulls will return”?
It all depends how big of a price bubble we were at? The highest price in palladium’s history has just happened and if a Cycle degree correction is due then the above 4th wave will never hold.
Any drop down to the 4th wave would still only be a Minor degree move, but we would need three higher degree levels before a Cycle degree 4th wave crash has completed.
There is also “No” daily trading limit that I could see. Lack of a daily limit virtually allows the price to free fall so a little dip sure can turn into “Big” dip.
Commercial hedgers were net short by a little more than a 2:1 ratio so I expect this ratio to change in the future as commercials turn bullish again.
Palladium has also started to decline before the end of solar cycle #24 which may not end until late 2020. December 2020 is also the end of a 20-year cycle that started in the year 2000.