- Gartley setup on Palladium
- 38.2% retracement on 0A wave
- 100% extension of Swing C as a multiple of Swing A
There is plenty going on in the precious metals market at the moment. As we looked at earlier in the week there is a correlation between silver and gold that is at a 12 month high and now we have a couple of good hourly support levels being reached for due to a rally in the US dollar in trade overnight.
The one that I am looking at here is palladium which may not be at the front of mind for everyone but is still well worth a look even to see the chart set up that it’s presenting here today.
In this case there is a potential support level being formed around the 611 mark. Keep in mind that this type of support isn’t confirmed until price respects it which means that the standard approach is not to place a buy limit order into the market.
For more details on the Gartley setup have a look on the main page of the blog and you will find numerous example of how this setup emerges. If a base occurs and the trader make a long trade then the stop would usually be placed under the cluster area.
The trader can place a first target mid way between the absolute top of this pattern (point 0) and the top of wave B. Alternatively trailing a stop (perhaps x bar trailing stop) is something that may be considered.
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