David Fuller's view The first point is that palladium (monthly, weekly & daily), previously a leader, has clearly underperformed gold and silver over the last month. However, palladium has achieved a partial mean reversion towards its 200-day moving average mean during this pullback which is of a similar size to what we saw in late April and early May. Both setbacks occurred over four weeks and ended with tails evident on the weekly charts, indicating that demand returned at the lower levels. This similarity does not yet confirm that palladium reached a sustainable low last Wednesday, not least because it pulled back from a higher level and is still above its rising MA. Nevertheless, a close beneath $685 is now required to indicate a further decline towards the mean before an additional recovery occurs. On a longer-term basis, there is a reasonable probability that palladium is still in a secular bull market.

Platinum (monthly, weekly & daily) fell back to potential support from its MA and has also rallied for the last three days. Consequently, a close beneath $1655 would now be required to suggest a further test of underlying support. For both platinum and palladium, confirmation that last week's lows will hold would require the establishment of a higher low during the next reaction, followed by a rally above whatever high is reached before that next pullback. There is a reasonable probability that platinum is also still in a secular bull market.