Since March, Palladium has been in a downtrend, initially very rapid but most recently flattened out a little bit. What is worth noticing is the way that Palladium is handling corrections. From this chart, you could teach people proper technical analysis.
So, the first correction was a triangle that ended with a bearish breakout. The second correction (red lines) was similar but a bit smaller – a pennant but also ended with the same outcome a drop. The third correction was a triangle (orange) which also resulted in a drop. The fourth correction is still ongoing. The formation is a flag (blue), and just like the three previous patterns, it promotes a breakout to the downside.
As long as it stays inside the flag, the price has all the right to climb slightly higher. We get a proper sell signal if Palladium breaks the lower line of the flag. There’s a high chance this will happen, so stay sharp and get ready for a highly probable drop in the nearest future.
