An explanation on this fine frame of Palladium’s monthly-chart, since 1977 :
” The essential underlying tendency of the wave principle is that action in the same direction as the one larger trend develops in five waves, while reaction against the one larger trend develops in three waves, at all degrees of trend.”
In accordance with the concept of the Elliott Wave Principle :
On this frame of monthly-chart, Palladium completed an impulsive five-wave sequence up of the cycle degree, on January 2001. Since then, Palladium is likely to correct in a three-waves sequence(or a variation).
“Quite often, when a large correction begins with a simple structure as first wave, the following waves will stretch out into a more intricately subdivided corrective form to achieve a type of alternation.”
Accordingly, for the subsequent of the overall corrective sequence in progress which may be an “expanded flat”, suggests that, an initial simple three-waves fall could be labeled as the wave A(circled), the ongoing more complex three-waves rise could likely be wave B(circled), and decline of an impulsive wave C(circled) which would be yet more complex is likely ahead.
How far down can the ongoing Palladium’s bear market be expected to go?
” The primary guideline is that corrections, especially when they themselves are fourth waves, tend to register their maximum retracement within the span of travel of the previous fourth wave of one lesser degree, most commonly near the level of its terminus.”
Based on the guideline of the Elliott Wave Principle, Palladium tend to develop its following wave sequences on the down trend persistently, and it is expected ultimately retrace to the span of travel area of the preceding fourth wave of primary degree, around the 114 level.