Palladium recovers $1,800 Boosted by the Agreement Confidence between the U.S. and China
|Palladium prices rebound this Monday to reach $1,800 per ounce, boosted by the confidence of an agreement between the United States and China, which could be signed before the end of the year.
Palladium scales 1.33% or $23.53 per ounce, while gold falls $5.95 per ounce or 0.41%, while silver stumbles 5.54 cents or 0.36% falling to $16.953 per ounce.
The United States and China governments are very close to sealing off "phase one" agreement, a Chinese media informed, dismissing "negative reports."
The positive feeling was heightened after the announcement made by the Chinese government that it will seek to improve measures for the protection of intellectual property rights. This point has been considered the most contentious within the trade dispute between the U.S. and China.
The Chinese media, Global Times, noted that the Chinese government is committed to continuing talks for a phase two agreement and even three with the United States.
Technical Overview
The Palladium in its weekly chart is reflecting that the upward trend is still intact. In terms of wave analysis, we can see that the price could be moving in a wave (5) of Intermediate degree in blue. At the same time, Palladium is developing a wave ((5)) of Primary degree in black.
From the graph above, we can observe that the fifth impulsive wave corresponds to an extended bullish sequence. At the same time, it is not excluded that the price could develop a movement that would acquire a greater acceleration.
On the other hand, the RSI oscillator shows a bearish divergence. This confirms that the action of the price is developing a fifth wave. However, this does not mean that the price will make a reversal movement immediately, but that the rally in progress is running out.
The following Palladium daily chart shows the price action developing an upward impulsive movement that could correspond to a wave 5 of Minor degree in green.
The next key resistance is at $1,825.01 per ounce, the all-time high reached on October 30.
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