- XPD/USD dived out of the rising wedge on the 4H chart.
- Palladium remains on track to recapture the $2800 mark.
- However, overbought RSI conditions remain a cause for concern.
Palladium (XPD/USD) is seeing sizeable gains above $2700 on Thursday, as the bulls reverse Wednesday’s drop below the latter.
The white metal tracks the bullish momentum seen across the precious metals space, thanks to the relentless sell-off in the US dollar across the board.
Price of Palladium
As observed on the four-hour sticks, the price of palladium has charted a rising wedge breakout after closing the candlestick above the trendline resistance at $2715.
At the press time, XPD/USD trades at $2728, flirting with four-week highs of $2730 reached in the last hour.
The price is poised for additional upside, with a test of the March highs at $2756 inevitable. Further up, the XPD bulls target the $2800 threshold.
Palladium price chart: Four-hour
However, the Relative Strength Index (RSI) has entered into the overbought region on the said time frame, warranting caution for the XPD bulls.
A pullback towards the pattern resistance now support at $2715 could be in the offing.
If the sellers take over complete control, the bullish 21-simple moving average (SMA) at $2684 could be put at risk.
The next line of defense for the buyers is seen at $2663, where the 50-SMA is located.
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