- Palladium consolidates weekly losses inside the key moving average envelope.
- Bullish Momentum suggests further consolidation of September’s losses.
- Multiple descending trend lines challenge the buyers beyond 50-DMA.
Palladium (XPD/USD) holds onto gains above $2,000, up 0.53% intraday around $2,013 as European traders brace for Friday’s bell.
In doing so, the precious metal marks the second bounce off 21-DMA while staying below 50-DMA. However, the firmer Momentum line hints at a slow grind to the north after the last month’s fall.
Though, downward sloping trend lines from September 01 and July 12, respectively around $2,125 and $2,220, add to the upside filters, beyond the 50-DMA level of $2,093, to challenge the XPD/USD bulls.
Meanwhile, a downside break of the 21-DMA level, close to $1,998 by the press time, may take a halt around early October’s swing high near $1,917 before challenging the monthly low near $1,850.
It’s worth noting that multiple stops around September’s bottom close to $1,848-49 may question the palladium bears afterward, a break of which will direct the quote towards May 2020 lows near $1,770.
Overall, palladium prices stay on course to recovery but with a bumpy road ahead.
XPD/USD: Daily chart
Trend: Further recovery expected
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