Palladium is starting to see some damaging weakness. The precious metal is falling sharply after breaking key support from its long-term 200-day average (DMA). XPD/USD could fall as low as $1731, according to strategists at Credit Suisse.
“Palladium has suffered a sharp sell-off after breaking support from its 200-DMA for a decline to the 38.2% retracement of the 2016/2021 bull trend at $2038, with the market now moving below here.”
“The risk stays seen lower for a fall to the 50% retracement and potential uptrend from early 2016 at $1731, where we would expect buyers to show at first.”
“Resistance at $2504 capping can keep the immediate risk lower.”