Palladium has started to turn lower after the metal suffered multiple technical rejections from its key 200-day moving average.
Palladium price analysis shows that the metal could fall towards the 1,500 support level over the short-term.
Palladium medium-term price trend
Palladium has started the month of May under downside pressure after price fell through the metal’s 200-day moving average, and subsequently failed to recover.
Palladium price analysis shows that sustained losses below the 1,790 level could accelerate technical selling towards the metal.
The weekly timely frame shows that Palladium’s 52-week moving average, around the 1,790 level, is a key technical area to watch. Weakness below this area could trigger technical selling towards the worst levels of 2020.
It is noteworthy a bearish head-and-shoulders pattern on the daily time frame has already reached its overall downside target, and the mentioned time frame currently shows no clear price patterns.
Palladium short-term price trend
Palladium price analysis shows that the metal has a bearish short-term bias while the price trades below the 2,030 level.
Palladium could fall towards the bottom of the falling broadening wedge pattern, around the 1,500 level, if weakness persists.
Dip-buyers may also attempt to move in from this area in anticipation of an eventual push back towards the top of the wedge pattern, which is located around the 2,000 level.
Palladium technical summary
Palladium price analysis indicates that the metal could fall towards the 1,500 level over the near-term. The lower time frames are warning that an explosive breakout may occur once the 1,500 to 2,000 price range is breached.