XPD/USD breaks nine-month resistance at $2,300
- Palladium kicks off a seven-day uptrend near the highest levels since September 2021.
- Overbought RSI, failures to break through the key resistance line signal further weakness.
- 200-DMA, the three-month horizontal support attracts short-term sellers while the bulls have a bumpy road north.
Palladium (XPD/USD) is accepting offers around $2,304, down 1.26% on the day, as risky market sentiment drowns commodities ahead of the European trading session. Thursday.
In doing so, bullion prices are turning around from a descending trend line from May 2021. Given the overbought conditions on the RSI, the latest declines are likely to last longer.
The same highlights the 200-DMA and a horizontal resistance zone turned support from October 2021 around $2,210 and $2,185 respectively, for XPD/USD sellers.
In an event that palladium prices fall below $2,185, the psychological magnet of $2,000 and the December 2021 high near $1,997 should return to the chart.
Alternatively, the metal’s rise past the indicated resistance line near $2,340 at press time will target the 61.8% Fibonacci retracement of the May-December 2021 decline near 2,460. $.
After that, XPD/USD bulls will have a free hand to target the $3000 round figure with highs marked in July around $1720 and $2880 likely acting as buffers.
Palladium: daily chart
Trend: expected decline