Palladium Price Analysis: XPD/USD to nosedive toward the $1731 mark – Credit Suisse

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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.

Resistance at $2504 caps to keep the immediate risk lower

“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.”