IBTimes.com

The platinum group metals continue to show resilience alongside the broader precious metals sector, with Palladium futures leading the way as the complex rapidly recovers the ground it gave up last week. Palladium has bounced about $40 per ounce from the recent swing low, completing a Triangle chart pattern on the hourly time scale and triggering a Breakout signal with strong momentum.

The initial breakout came swiftly after the penetration of resistance at the top of the Flag chart pattern, and has currently reset back into the buy zone to test the $680 price level. The Quality measure for this formation registers at 7 bars, with good Uniformity and Clarity demonstrated over the length of the flag. Even distribution of the swing highs and lows is impressive given the high volatility in recent trade, and the Initial Trend reading indicates a continuation pattern with a resumption of the ongoing rally possibly soon.

If the market can hold the present support level, the breakout has a price target forecast of a minimum of $701 per ounce, with higher end target closer to $715. A correction back below $675 would negate the pattern for now.

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