Palladium - a small short before the move higher
Updated
Palladium has just provided three reasons why I will look for a retracement before looking for the long.
1. Market has reached a trend line connecting tops - 9 month span
2. Market has hit the 1.272 from high 18th Nov (double top) - low 31th Dec - the 1.272 is the pink line. Note: We need to take in to account the larger swing from Dec15 - present.
3. Market has hit the 618 of the last big swing from high May 21 - 31 Jan - the black line is the 618
From here we look for a pullback to the 382 that happens to be a strong support zone - light blue line
After the pull back we go LONG with an ABCD pattern and the top of our range box to reach our target.
1. Market has reached a trend line connecting tops - 9 month span
2. Market has hit the 1.272 from high 18th Nov (double top) - low 31th Dec - the 1.272 is the pink line. Note: We need to take in to account the larger swing from Dec15 - present.
3. Market has hit the 618 of the last big swing from high May 21 - 31 Jan - the black line is the 618
From here we look for a pullback to the 382 that happens to be a strong support zone - light blue line
After the pull back we go LONG with an ABCD pattern and the top of our range box to reach our target.
Note
The Monthly rangeNote
Three possible short scenarios to consider....Trade closed: target reached
First Short scenario has played out and we found the correction. Looking to take profits now and the subsequent LONG setup. We'll look to see how the market approaches the 382 support area.
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