Palladium just served up a classic case study in why technicals matter. Our previous call on palladium targeted a retrace toward key fib supports, specifically the 0.618 level at $1,400 and the 0.65 at $1,295, which is also known as the golden pocket in the trading community.
After dipping from $1,414 to $1,344, the metal has stalled, locked in a sideways range. The broader thesis for a push as high as $1,788 remains alive, but in the short term, price action presents a different opportunity.
Currently, palladium is boxed into tight bands between the low $1,300s and $1,440s–$1,500s, with the biggest supply walls waiting at $1,370 and $1,440. What sets this up as a prime spot for short sellers is the rare convergence of advanced patterns and momentum signals.
Both a bearish butterfly and a bearish deep crab harmonic are set to complete around $1,440–$1,442. At the same time, the RSI percentile shot above 90, putting current readings in the most overbought territory seen in only 10% of the last several thousand sessions, which is a textbook warning that momentum is stretched.
Suggested Setup
- Entry: $1,440
- Stop Loss: $1,475
- Take Profit: $1,370
- Risk/Reward: 2
Read More: PLTR Price Prediction: Palantir Finally Shows Short Setup After 3-Year Run
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