Price on the daily chart of Palladium has now rejected higher prices and moved back lower after it tried to break through resistance.
Price made a break higher from the daily inside bar for a run of about 90 points before hitting the daily resistance level overhead where as you can see on the chart below; price has previously also tried and failed to make a run higher through this level as well.
After hitting the resistance level, price made a rejection and collapsed to fall into the major daily support level to be where we find price now. Price in recent times has made a real major turnaround in this market. From being in a strong and sustained down-trend and then a sideways trading pattern, price has now turned it around.
At first as is often the case when major turnarounds form; price formed a base. Price has since gone on to form what is crucial for you to note is a 1,2,3 reversal pattern. If you are not familiar with this, then I highly recommend you take a moment out of your day to quickly jump over and check out this lesson at;
How to Trade Price Action With the Trend as Your Friend
The important thing about this 1,2,3 was that price on the upswing broke through a crucial resistance level and this was a really key confirmation for the new trend beginning. Not only was this a new higher high, but this resistance breaking was now going to act as a new support level and price flip, so now if the trend lower was to try and continue it had to move back and through a support level.
Previously the trend lower was just moving on it’s merry way by itself with freedom, but now if it wanted to continue it had a support level in the way and this meant the bulls were building some control into this market.
We can see that again as we look at this daily chart now. Price is testing a major daily support level. This is a market I watch closely because it is a market that respects it’s major levels and is a good market to trade.
Daily Chart – Inside Bar
Daily Chart – Support or Breakout?
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