Head of the FICC Technical Analysis Research at Commerzbank says that Palladium has probably reached its end zone and could be ripe to return to 2834 if the 3028/3035 price target holds firm.
The research document just released also identifies downside targets at the 2758 March high and the February high of 2524/2491. A drop below the latter would stir a call for a re-evaluation of the bullish outlook, with price seen to be trading sideways if this were to happen.
Palladium price has been shooting higher as business activity around manufacturing starts to pick up, leading to surging demand for industrial metals.
The outlook for Palladium from Commerzbank is for prices to hit 3484/3598 if the resistance at 3053 is cleared.
Technical Levels to Watch
With Palladium hitting all-time highs above $3,000 yesterday before pulling back, palladium price is making a renewed dash for this level after a bounce off the channel’s lower border. This move could retest the 3017.00 all-time high, above which palladium price action’s next target comes in potentially at 3080 (100% Fibonacci extension from the swing low of 29 January to the swing high of 18 March.
On the other hand, a breakdown of the channel allows bears to target the 2875.25 price level in a move that must also take out 2961.71 (78.6% Fibonacci extension). Below this area, 2868.5 and 2800.00 may become additional downside targets.