Palladium Price Analysis: XPD/USD bulls gather strength for a test of $2,945
- XPD/USD eyes additional upside, fresh record highs on the cards.
- Buyers cheer bullish RSI, higher highs in a rising channel on the 1H chart.
- Strong support awaits at $2,856 for Palladium.
Having reversed sharply from a new record high of $2,929 on Friday, Palladium (XPD/USD) has regained the upside momentum, as it now eyes a sustained move above the $2,900 threshold.
Price of Palladium
As observed on the one-hour chart, the XPD/USD has stalled its rebound, entering a phase of consolidation around the $2,900 level.
The Relative Strength Index (RSI) is edging lower but holds comfortably above the midline, currently at 65.43, implying that there is more room to rise for the white metal.
The XPD bulls could regain poise, as they look to retest record highs, above which the rising channel hurdle at $2,945 could be threatened.
Note that the price has been trending within a potential rising channel pattern since April 21, forming higher highs and offering support to the buyers.
Palladium price chart: One-hour
However, if the buying interest evaporates, the price of palladium could fall back towards the upward-sloping 21-hourly moving average (HMA) at $2,867.
The next downside target is envisioned at $2,856, which is the intersection of the 50-HMA and the channel support.
An hourly closing below the latter could likely negate the positive outlook in the near term.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
