- XPD/USD corrects after reaching fresh all-time-highs just shy of $2,900.
- Palladium trades in a rising wedge on the 4H chart, with a bullish RSI.
- The supply deficit continues to boost the price of Palladium amid rising demand.
Palladium (XPD/USD) is correcting towards $2,850 after hitting a fresh record high at $2,897 on Wednesday.
The white metal rallied as much as 5%, taking out the previous lifetime highs of $2,882 set earlier this year, as investors fretted that the supply deficit issue would likely worsen amid a rebound in demand from the automakers.
Further, the rally in gold prices also bolstered the upsurge in the XPD/USD. Palladium is used heavily in industrial applications apart from it being a precious metal.
Price of Palladium
As observed on the four-hour sticks, the price of palladium continues to waver in a rising wedge formation after facing rejection at the pattern hurdle.
The immediate support awaits at $2,850 the psychological level.
If the correction extends, a test of the wedge support at $2,810 could be in play. That level also coincides with the 21-simple moving average (SMA) cap.
Palladium price chart: Four-hour
Despite the pullback, the XPD bulls remain poised to clinch a fresh record high, as the Relative Strength Index (RSI) has eased from the overbought conditions while still holding firmer above 50.00.
Therefore, any bullish attempts could call for a test of the previous record high, above which the new swing highs could be challenged just under $2,900.
The next stop for the bulls is seen at the rising wedge support, now at $2,912.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.