Palladium Price analysis: XPD/USD bounces off 200-DMA amid oversold RSI
- Palladium consolidates the heaviest daily loss in 15 months.
- U-turn from key SMA, oversold RSI conditions suggest further gains.
- Bulls have a bumpy road to recovery, yearly support line adds to the downside filters.
Palladium (XPD/USD) prices justify the early Asian bounce off 200-day SMA (DMA) while picking up the bids to $2,553, up 1.95% intraday, heading into Friday’s European session.
The corrective pullback gains support from the oversold RSI conditions to attack 38.2% Fibonacci retracement of June 2020 to May 2021 upside, around $2,560.
While the quote’s ability to cross $2,560 directs it to the $2,600 threshold, any further upside will be questioned by a three-month-old horizontal resistance around $2,675-80.
Alternatively, the metal’s failure to remain strong, followed by a daily closing below the 200-DMA level of $2,495, will have to break the year-long ascending trend line, near $2,460, to keep the XPD/USD sellers hopeful.
Overall, palladium prices may recovery during the short-term but bears aren’t out of the woods.
Palladium daily chart
Trend: Further recovery expected