Palladium sets up for another bullish breakout

We highlighted the potential for a bullish cup and handle breakout for Palladium futures in Straight from the Chart on September 25. In addition, palladium also has a bullish breakout and retest from a big base, which we flagged in our November 25 Charted Market Insights note. Similar to platinum, which we covered in this blog earlier today, palladium is also positioned for a tactical upside breakout.

Sustaining a rally above the 1541.50-1566.00 resistance zone would confirm a tactical base from the late October and late November lows at 1356.50-1345.00 and favor continued upside to 1695 (mid October high) and 1720 (pattern count). Until then, holding the improving 13-, 26-, and 40-day moving averages at 1470-1454 and chart support from 1472 to 1444 would keep the pattern constructive for palladium.

Chart 1: Palladium futures: Daily chart

A breakout and retest from a big base pattern for palladium suggests potential upside to 1660-1695, which aligns with the tactical upside count highlighted above, and potentially into the 1800s.

Chart 2: Palladium futures: Weekly chart