Emphatic failure at the $2,208 October high has increased the downside risk for palladium. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, is closely watching the $1,850 level as a break below here would open up the long-term Fibo support at $1,737.
Key near-term resistance lies at $2,208
“Palladium failed to close above the $2,208 October high and this has provoked a sharp sell-off. This has again pushed the chart to a more negative bias and attention is once again on the $1,848/50 support.”
“Directly below $1,848/50 lies the 200-week ma at $1,807.09, which should hold the initial test. Below here will target the long-term Fibo support at $1,737.”
“Rallies will find minor resistance at $2,043/2022. This guards the more important $2,208/15, October and November highs and while capped here a negative bias will now persist.”