Artem Voloskovets
Palladium is attempting a bullish pivot after printing a morning star at horizontal support, with follow-through confirming a shift in momentum. According to $Trader, the initial signal came from a morning star formation at support, followed by continuation that suggests buyers are stepping in after a period of selling pressure. However, the move is now approaching a critical resistance zone where the next reaction will define whether the recovery continues.
The Pivot That Changed Palladium's Direction
The chart shows a clear reaction at horizontal support, where a morning star pattern formed - indicating that sellers lost momentum and buyers stepped in. Following that signal, price moved higher, confirming the early shift in direction. The move reflects a transition from selling pressure into a short-term recovery phase.
Price moved higher after a morning star at support, confirming a potential bullish pivot.
Breakout Attempt Meets Immediate Friction
Price is now attempting to break out of a bearish pennant structure. The move higher is constructive, but the setup is not unfolding in open space. Instead, price is moving directly into a heavy resistance zone, making this less of a clean breakout and more of a contested move.
Palladium Prices Keep Falling as Bearish Pressure Builds provides context for how persistent the selling pressure has been heading into this recovery attempt.
The Zone Where Palladium Supply Builds
The resistance area includes prior ascending wedge support now acting as resistance, along with both the 50 EMA and 200 EMA. This creates a confluence zone where supply is likely to emerge.
This is where early longs may begin taking profits and traders from prior breakdowns may look to exit.
This combination increases the probability of resistance, turning the setup into a tactical trade rather than a high-conviction trend continuation. For additional context on how palladium has behaved near structural levels, Palladium Forms Cup Pattern Near $1,845 as Price Finds Stability outlines a comparable setup where price stabilized before testing key zones.
The zone where supply builds includes two key factors:
- Early longs may begin taking profits
- Traders from prior breakdowns may look to exit
Whether this becomes continuation or rejection will depend entirely on how price behaves within this resistance cluster.
For now, palladium is not just reversing - it is testing a major barrier. Palladium Rallies 5% as 94% Short Positioning Creates Squeeze Risk shows how positioning extremes can accelerate moves in either direction once a key level is resolved.
Artem Voloskovets
