Palladium continues to trade in a volatile range below $2,800.
Sellers are supported by a three-week-old rising trend line and a 50-day moving average breakdown.
Before regaining control, the Bulls must cross June’s top.
Prior to Wednesday’s European session, palladium (XPD/USD) prices struggle to overcome the previous day’s downside break of the major support, now resistance, around $2,793, down 0.10 percent.
The previous day, the shiny metal surged to its highest level since late May before falling back below the convergence of an ascending trend line from June 18 and the 50-day moving average.
Even though MACD displays optimistic signals, the bearish impulse has remained intact thus far today, giving sellers hope.
The 38.2 percent Fibonacci retracement of the March-May upside, which is near $,2735, serves as short-term important support for the commodity before emphasizing the $2,700 hurdle for sellers.
Any additional decline will be tested by successive tops around $2,685 that were established in late March and early April.
On the other hand, the metal’s daily close beyond the $2,805 confluence will be probed by the last month’s high around $2,872, but the bulls won’t be in charge till the multi-day top of $2,882 is refreshed.
If palladium prices rise above $2,882, the $2,900 round figure and the May 18 top above $2,945 will be key to watch.
More weakness is likely in the future./n
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