Commerzbank analysts are confident that the recent correction in palladium prices is over, with the price set to resume the push towards the current all-time high at $3,020.
Karen Jones, who heads the FICC Technical Analysis Research at Commerzbank, indicates that the correction targeted the $2,735 mark, where the 55-day moving average is located. This move allowed it to stabilize before a key retracement at $2,706, putting palladium in good stead for the bulls to come into the fray and set off an upside resumption.
The call by Commerzbank is for a pitstop at $2944, ahead of the current high at $3,020. However, the bank is also expecting the $2,706 to act as a defensive wall to the November/january highs at $2516/2511 and the 200-day moving average at $2452.
Technical Levels to Watch
The correction from the top around 3,000 has found support at the 2752.21 price mark. However, the bearish pennant that has formed could allow for a deeper correction. A of this flag targets 2700.58 and 2596.36, as price aims to complete the measured move at the 2500.00 psychological support.
On the other hand, an upward push from the current support at 2752.21 targets 2875.25. Completion of this move invalidates the pennant. 3000 only becomes attainable if the bulls can force a break of 2875.25, with a potential pitstop at the 18 May high at 2940.65.