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Palladium Prices May Not Form New Highs Above 2878 – Commerzbank

Commerzbank’s research team has come up with a new outlook for Palladium prices. This outlook says that Palladium is likely to stall before it hits its new all-time highs at 2878. This is because of a lack of upside momentum confirmation on the daily RSI. 

In providing this outlook on behalf of Commerzbank, Team Head of FICC Technical Analysis Research, Karen Jones, says that the approach of price towards the previous ATH at 2848 has been marked by an underpinning of price at the 20-day moving average, located at 2680. The lack of confirmation of a new high by the daily RSI shows a loss of upside momentum. This has led to concerns that a higher high may not be attained, requiring a tightening of stops.  

The bank projects that a slip of price below the February high at 2491.10 would require a re-assessment of the long-term bullish view on Palladium prices. Consolidation of price between the 2278.99 March low and above the September-to-January lows at 2202.99/2184.67 could be in the works. 

The bank rounded off the outlook piece by saying that the 3000 psychological resistance and the 3050 price level remain the targets for bulls if the 2878 resistance is shattered. 

Palladium prices have rallied into the 6th consecutive year, as vaccinations against the coronavirus and easing of lockdowns spur demand.

Technical Outlook for Palladium

The failure swing on the RSI indicator is seen on the daily chart, which is the concerning factor for Commerzbank as far as attainment of new highs above 2878 are concerned. The active daily candle has met resistance at the 2800 psychological price level. Bulls need to take out this level for price to have a chance to attain the previous all-time high around the 2875.25 price level. Above this level, new record highs beckon for palladium prices.

On the flip side, a pullback following rejection at 2800 brings in 2727.82 as the initial downside target, with further decline bringing 2654.32 into the picture as an additional target. A further retreat targets 2596.36, before the ceiling of the range at 2500 comes into play as a downside target of note.

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Palladium Daily Chart

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