**Palladium Technical Analysis: December 26, 2025**
*Adapted and expanded from original analysis by FxPro News.*
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### Introduction
Palladium, crucial for the automotive and technology industries due to its use in catalytic converters and electronics, has experienced notable volatility throughout 2025. Technical and fundamental factors have both shaped its price trajectory, influencing investor sentiment and future expectations. This comprehensive analysis examines the recent wave structure observed in palladium’s price movements, incorporating additional research and drawing on the latest market data.
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### Recent Price Developments
– **Recent Decline**: Palladium has recently been under significant bearish pressure, with the price descending swiftly from higher resistance levels.
– **Corrective Structure Formation**: The price action suggests that a corrective wave pattern has emerged, aligning with Elliott Wave analysis methodologies.
– **Key Support and Resistance**: Major support levels are now under scrutiny as sellers challenge the lower price boundaries.
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### Elliott Wave Analysis
The Elliott Wave theory is a prominent technical framework for forecasting price movements based on recurring wave patterns. According to the original article and enhanced by additional research:
#### Wave Breakdown
– **Major Impulse**: Palladium initially surged, completing a characteristic five-wave bullish sequence.
– **Corrective Phase**: This impulse has been followed by a three-wave (A-B-C) corrective structure, which has dominated recent trading sessions.
– **Subwave Structure**:
– *Wave A*: Strong selling pressure initiated the corrective phase.
– *Wave B*: A moderate rebound or consolidation emerged, as buyers attempted to stabilize the price.
– *Wave C*: Renewed bearish momentum pushed prices even lower, targeting significant Fibonacci retracement areas and prior support zones.
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### Technical Indicators and Chart Patterns
#### Moving Averages
– **Short-term (20-day) MA**: The price has consistently traded below its short-term moving average, signaling ongoing bearish momentum.
– **Long-term (100-day) MA**: The crossing of price below the long-term moving average further validates the prevailing downtrend.
#### Relative Strength Index (RSI)
– **Oversold Signals**: The RSI indicator has dipped into oversold territory, suggesting the potential for an imminent technical rebound or a short-term consolidation period.
#### Fibonacci Retracements
– **Key Levels**:
– The correction has retraced approximately 61.8 percent of the previous major impulse, aligning with classic retracement expectations.
– This zone often acts as a magnet for price action, attracting both buyers and sellers as the market seeks equilibrium.
#### Support and Resistance Zones
– **Primary Support**: Around the $900-$950 range, where prices have previously found stability and reversal interest.
– **Resistance Area**: Lies near $1100-$1150, which may cap any initial recovery efforts unless momentum drastically shifts.
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### Fundamental Factors Influencing Palladium
#### Automotive Sector Trends
– **Catalytic Converter Demand
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