**Palladium Price Wave Analysis – December 26, 2025**
*Adapted and expanded from an article by FxPro News, with additional insights from other reputable financial sources.*
—
### Overview
Palladium, one of the world’s most sought-after precious metals, continues to command the attention of investors and industrial users alike due to its unique properties and vital role in automotive catalysts. As we approach the close of 2025, the palladium market is showing signs of significant technical activity, shaped by a combination of supply constraints, shifting demand, and broader macroeconomic forces.
This extended analysis explores the recent price behavior of palladium, highlighting key wave patterns being observed, interpreting what these might signal for future movements, and integrating insights from other trusted authorities in the field.
—
### Context: Why Analyze Palladium Waves?
Palladium serves a critical role in industry, with about 80% of its global consumption stemming from autocatalyst production, particularly in gasoline vehicles. Its scarcity, Russia’s dominance in production, and technological shifts, such as the move toward electric vehicles, make it a particularly volatile asset, but also a compelling target for both speculators and hedgers.
Technical analysis, and specifically wave analysis (Elliott Wave Theory), is frequently used by traders to anticipate turning points or extensions in such volatile markets. This approach breaks down price action into discernible phases, providing potential roadmaps for likely future action.
—
### Key Highlights from Recent Technical Analysis
**1. Descending Impulse Wave Identified**
– According to the original FxPro News analysis, palladium has been moving within a notable impulse-type wave, classified as Wave 3 on daily charts.
– Wave 3 in Elliott Wave Theory is typically the most powerful and extended part of the impulse sequence.
– This movement often features high trading volume, strong directional moves, and sustained trends, sometimes exceeding the extent of previous waves.
**2. Price Action Breakdown**
– In December 2025, the market displayed an assertive sell-off, propelling prices below several critical support zones.
– A “breakout” below $1,000 per ounce occurred, a significant psychological and technical barrier.
– The move established new multi-month lows, suggesting a shift to a more bearish market outlook in the near term.
**3. Support and Resistance**
– Immediate support is seen around $950 per ounce, where historical demand previously arrested declines.
– Should downward momentum persist, levels near $900 and even $875 become focal points for buyers considering entry.
– Resistance, by contrast, is expected near the previous support of $1,000. Additional resistance can be seen at $1,100, should a reversal begin to materialize.
**4. Technical Patterns and Indicators**
– The downward trend is confirmed by the 50-day and 200-day moving averages, both sloping downward and exerting upside pressure.
– Relative Strength Index (RSI) has recently tilted into oversold territory
Read more on AUD/USD trading.