Palladium Price Analysis: XPD/USD eyes $2800 but overbought conditions warrant caution
- 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.
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.
