Palladium looks vulnerable above $2000/oz
(Kitco News) - Palladium is in a very interesting place at the moment. The price has stalled on the downside but is stuck between a rock and a hard place for the bulls. The drop had been quite something after the great uptrend the precious metal found itself in between 2016 and mid-2021. Now a nearly 40% retracement is settling down technical the price is in a precarious place.
Looking at the chart below, one of the highlights is the support level near $1800/oz. The bulls managed to hold that level and today the price is flirting with $2000/oz. The key now is the consolidation high at $2192.50/oz. It is a strong resistance zone and if the bulls can break that hurdle it could indicate that the tough times could be over.
On the downside, the support zone remains at $1851.50/oz. Having said that the 200 weekly simple moving average (SMA) is coming close to provide some more technical support. The next couple of weeks will be very interesting and this market is finely poised.