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Bulls need to overcome 2,350: Palladium price analysis
- Palladium has staged a major recovery after the popular metal received a strong boost from the Federal Reserve’s unlimited bond-buying program
- Palladium price analysis highlights that a strong recovery from the 1,500 level has occurred
By: Nathan Batchelor
Palladium has staged a major recovery after the popular metal received a strong boost from the Federal Reserve’s unlimited bond-buying programme.
Palladium price analysis shows that the metal needs to overcome the 2,350 resistance level to keep the recent bullish momentum intact.
Palladium medium-term price trend
Palladium recently staged a strong recovery from just below the 1,500 level, after the FED’s QE programme boosted palladium prices.
Palladium price analysis shows that bearish MACD price divergence on the daily time frame has been completely reversed after the latest decline.
The daily time frame also shows that a bearish head-and-shoulders pattern played out to the downside, and reached its overall downside objective.
Drawing a Fibonacci retracement from the all-time price high to the March low, palladium is currently testing the 61.8 retracement of the mentioned sequence.
The 2,575 resistance level is the next major resistance area to watch if a breakout above the 2,350 level occurs, while failure to surpass the 2,350 level could result in a pullback towards the 50 per cent Fibonacci level, around the 2,180 level.
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Palladium short-term price trend
Palladium price analysis over the short term shows that the price is consolidating around the metal’s 200-period moving average, around the 2,300 level.
The one-hour time frame is currently showing that a large amount of bearish MACD price divergence has formed during the latest rally.
Looking more closely at the bearish price divergence, the MACD price divergence extends down towards the 1,700 level.
Failure to gain traction above the 2,300 level could result in a drop towards the 1,700 level, which would reverse the bearish MACD divergence.
Palladium technical summary
Palladium price analysis highlights that a strong recovery from the 1,500 level has occurred. The lower time frames are warning that bearish MACD price divergence extends down towards the 1,700 level.
Source: https://capital.com/palladium-price-analysis-april