Palladium sets up for bullish breakout

Palladium futures are in position for an upside breakout from a late July-late September cup and handle. A decisive rally above 1277.50 would confirm this tactically bullish pattern for further upside to the July peaks at 1356-1373.50 and then toward the pattern count at 1480.

Holding today's session low at 1224.50 is the key for immediate upside on palladium. This level anchors the setup. See Chart 1 below for additional supports at the important daily moving averages and Fibonacci retracement levels that underpin this tactical bullish backdrop.

Palladium is also building a potential big base pattern - see our 9/17 Straight from the Chart post for more.

We highlighted the potential for a bullish breakout for Platinum futures in yesterday's (9/24) The Chart Check.

Chart 1: Palladium futures: Daily chart