- June 24, 2021
- Posted by: Analysis Team
- Category: Forex News
- Palladium stays firmer around weekly top, extends bounce off three-month low.
- Bearish chart formation, sustained trading below 200-SMA probe buyers.
- Late May’s bottom add to the upside filters, sellers will have a bumpy road below $2,460.
Palladium (XPD/USD) picks up bids around $2,620, up 0.21% intraday, as European traders brace for Thursday’s bell.
The precious metal consolidates the previous week’s heavy losses following a bounce off a four-month low, portrayed the last Friday. In doing so, palladium prices print a bearish chart pattern, rising wedge, on the four-hour (4H) play.
Not only the bearish formation but receding strength of the bullish MACD and challenges to further upside raised by the Momentum line also need palladium buyers to remain cautious. Furthermore, the commodity’s sustained trading below 200-SMA becomes an extra reason for sellers to remain hopeful.
Hence, a clear downside break of $2,595 will be a trigger to the quote’s south-run challenging the monthly bottom surrounding $2,460. During the fall, Tuesday’s swing low near $2,550, followed by the $2,500 threshold, will test the Palladium bears.
Meanwhile, the bright metal’s run-up beyond $2,636 will defy the bearish chart pattern by directing the bulls toward a monthly horizontal hurdle near $2,730-35, with the $2,700 round figure likely acting as an intermediate halt.
It’s worth noting that palladium buyers won’t be in full control until successfully crossing the 200-SMA level of $2,790, also the $2,800 psychological magnet to be on a safer side.
PALLADIUM: FOUR-HOUR CHART