Short term view suggests the rally in Palladium to 2814.25 ended wave (3). The wave (4) decline in Palladium is currently in progress to correct cycle from May 13, 2019 low before the rally resumes. Internal of wave (4) is unfolding as a double three Elliott Wave structure. Down from Feb 28, 2020 high (2814.25) , wave ((a)) ended at 2610.1 and bounce in wave ((b)) ended at 2740. Wave (©) lower ended at 2387.30 which completed wave W of the double three.
Afterwards, the metal ended the rally in wave X at 2576.9. It has resumed lower and broken below wave W at 2387.3 suggesting the next leg lower has started. Down from wave X high at 2576.9, wave (a) ended at 2391 and wave (b) bounce ended at 2465.10. Expect Palladium to extend lower towards 2248 - 2311 area to end wave ((w)), then it should bounce in wave ((x)) to correct cycle from March 2 high in 3, 7, or 11 swing before turning lower again.
The potential target for wave Y of (4) can be measured as 100% - 123.6% Fibonacci extension of W-X which comes at 2045 - 2146. This area, if reached, can see buyers for further upside or 3 waves bounce at least. We don’t like selling the proposed decline due to the bullish trend in the higher degree.
PA_F (Palladium) 1 Hour Elliott Wave Chart
