Technical Analysis – Palladium futures break above restrictive trendline but fail to rally
April 27, 2023 12:27 pm
Palladium futures (June delivery) have been stuck in a prolonged downtrend since September 2022, generating consecutive lower highs and lower lows. Even though the commodity managed to slice through its descending trendline and the 50-day simple moving average (SMA), its upside attempt faltered quickly.
The momentum indicators are reflecting a cautiously positive tone as buyers have not surrendered yet. Specifically, the stochastic oscillator is set to post a bullish cross, while the RSI managed to hold above its 50-neutral mark despite the recent decline.
Should buying interest intensify further, the price could initially test the recent resistance region of 1,643, which capped the latest rebound. Conquering this barricade, the bulls might aim for 1,835 before the December resistance of 1,996 appears on the radar. Even higher, the November peak of 2,121 could prove a tough obstacle for the commodity to overcome.
On the flipside, bearish actions could send the price lower to challenge the recent support of 1,460, which overlaps with the 50-day SMA. Further declines may then pause at the 1,384 hurdle. A break below that level could set the stage for the almost 4-year low of 1,328.
Overall, although Palladium futures exhibited some signs of recovery from their sustained decline, the latest rebound failed to strengthen. However, as long as the price holds above both the descending trendline and the 50-day SMA, this could be considered a corrective phase within the prevailing longer-term downtrend.
Palladium futures (June delivery) have been stuck in a prolonged downtrend since September 2022, generating consecutive lower highs and lower lows. Even though the commodity managed to slice through its descending trendline and the 50-day simple moving average (SMA), its upside attempt faltered quickly.
The momentum indicators are reflecting a cautiously positive tone as buyers have not surrendered yet. Specifically, the stochastic oscillator is set to post a bullish cross, while the RSI managed to hold above its 50-neutral mark despite the recent decline.
Should buying interest intensify further, the price could initially test the recent resistance region of 1,643, which capped the latest rebound. Conquering this barricade, the bulls might aim for 1,835 before the December resistance of 1,996 appears on the radar. Even higher, the November peak of 2,121 could prove a tough obstacle for the commodity to overcome.
On the flipside, bearish actions could send the price lower to challenge the recent support of 1,460, which overlaps with the 50-day SMA. Further declines may then pause at the 1,384 hurdle. A break below that level could set the stage for the almost 4-year low of 1,328.
Overall, although Palladium futures exhibited some signs of recovery from their sustained decline, the latest rebound failed to strengthen. However, as long as the price holds above both the descending trendline and the 50-day SMA, this could be considered a corrective phase within the prevailing longer-term downtrend.
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