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Palladium Technical Analysis: Lower levels back in focus

Kitco News

Welcome to Kitco News' 2022 outlook series. The new year will be filled with uncertainty as the Federal Reserve looks to pivot and tighten its monetary policies. At the same time, the inflation threat continues to grow, which means real rates will remain in low to negative territory. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.

(Kitco News) - Palladium continues to struggle even as some of the other precious metals have moved a leg higher. The highlighted orange area on the chart shows the $2000/oz area which the bulls failed to test in this most recent price move. Elsewhere on the upside, the $2205/oz level looks pretty firm with around seven tests on this chart alone. Lastly, there is also a trendline resistance that could act as a ticky zone. The downward diagonal sloping line which originated on 13th July 2021 has now been tested for the 3rd time and looks strong.

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On the downside, the price could move to the wave low marked in green at $1535/oz. This area was a significant pivot area back in March 2020 on the far left of the chart. Another thing to mention is the real low volume on the histogram at the bottom. There has been a distinct lack of interest in the Palladium futures contract especially as the price rose to test $2000/oz. Also, the volume seems to pick up on the down moves which is a sign that the market is backing lower levels for now.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.