- XPD bulls focus on Tuesday’s close to confirm a symmetrical triangle breakout on 1D chart.
- RSI points north above 50.00, a test of record highs at $2882 could be in the offing.
- Deeper supply deficit issues this year propels Palladium towards 14-month highs.
Palladium (XPD/USD) is extending its winning streak into the fourth straight session, having briefly regained the $2700 mark.
The white metal is on the rise so far this year, courtesy of aggravating supply deficit issues. Russian mining giant Nornickel said last month that its nickel, copper, platinum, and palladium output could be 15-20% short of its original guidance.
The world's largest palladium producer said that on account of the mine closures in February amid water issues, it predicts platinum group metals production to fall by 710,000 ounces.
Meanwhile, expectations of faster global economic recovery from the coronavirus pandemic-induced downturn also help boost the demand for the industrial metal. Palladium is used as a critical metal in catalytic converters in gasoline-powered engines.
Price of Palladium
Looking at the technical graph, Palladium is breaking out from a two-month-long symmetrical triangle formation on the daily chart.
The price needs to close Tuesday above the falling trendline resistance at $2681. Confirmation on a daily closing basis is needed to validate the upside break.
A potential move higher towards the all-time-highs is also back by the 14-day Relative Strength Index (RSI), which edges higher above the midline but remains well beneath the overbought territory.
This suggests that there is more room to rise for the industrial metal.
Also, note that the price trades way above all the major averages on the daily time frame.
Palladium price chart: Daily
In case of any profit-taking slide, the XPD/USD pair could reverse to test the pattern resistance now support at $2681.
The confluence of the rising trendline (triangle) support and the bullish 21-daily moving average (DMA) at $2629 is likely to act as a strong downside fence for the sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.