Palladium Daily Chart Review

 

pay00-sept-13-2016

 

Palladium looks like it could be done for, as it is starting to go deeper than any 4th wave bottom should do.  The last “C” wave to the August top was also a diagonal. Overall the 5 waves down looks more like an impulse with just one small but critical overlapping dip into the wave 2 in 2014.  If all is correct, then palladium should dip down to the $450 price level or lower.  Either way it should also be finishing a potential “C” wave bottom in Minute degree, and also finish a “B” wave in Minor degree. This then would open it up for a massive “C” wave, taking it to all time new record highs above $1000. 

The entire palladium bull market of a Primary degree 5th wave, is all a diagonal. So 5 diagonal waves in Intermediate degree, is what I would need to find a home for Cycle degree wave 3.  This is still some time ahead of us, so we have to have some patience and let this play out. 

If palladium does decline to a new low, it will also help to confirm that the 2016 commodities run was a fake, or a bear market rally.   We can also see how far this 2016 rally retraced, which is not your average 20% rally.  Imagine if this was flipped around and we had a 60-80% bull market correction. 

The majority would have the bull market ended as it would not conform to the conventional 20% retracement.  Deep corrections are normal in commodities and making normal forecast will seldom work.

At this time palladium looks good, as another diagonal decline, but we should see some nasty surprise counter rallies along the way. 

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