Palladium is retreating off a two-month-old resistance line, owing to an overbought RSI.
The low from May strengthens the negative filter ahead of the weekly support line.
On the trend line breakout, bulls can aim for June’s peak.
As European traders prepare for Thursday’s bell, palladium (XPD/USD) remains on the back foot, down 1.0 percent around $2,755. The commodity made a U-turn from a downward sloping trend line that had been in place since early May the day before, aided by overbought RSI readings. The subsequent dips, on the other hand, fight the 200-SMA to keep the selling hopeful.
May’s monthly bottom at $2,726 is likely to reappear on the chart, as the RSI line suggests more losses below the $2,755 immediate support.
A downward sloping trend line from June 23, near the $2,700 mark, will keep any additional weakness at bay.
Meanwhile, a break above the $2,782 resistance line, which is also the indicated resistance line, will target the $2,800 round figure first before moving on to the mid-June top of $2,841.
If the XPD/USD bulls maintain their dominance beyond $2,841, the previous month’s high of $2,872 will be on their minds.
To summarize, palladium prices are likely to consolidate further in the face of an overbought RSI, but bears may not be welcomed till the quote remains above the short-term support line.

Pullback is projected as a trend./nRead More