Palladium has been coming under heavy pressure as investors move away from the metal and into other safe-haven asset classes.
Palladium price analysis shows that the metal could experience more heavy losses, with sellers possibly targeting the $1,500 level.
Palladium medium-term price trend
Palladium recently reversed sharply from it’s all-time high, with the metal currently suffering its worst one-day losing streak since May 2015.
The technicals and fundamentals are starting to align, with the both the short medium-term outlook looking bearish for palladium.
Supply chain shutdowns and a lack of consumer demand are clearly affecting palladium, as the metal is mostly used in catalytic converters for cars.
Palladium price analysis shows that bearish MACD price divergence
on the daily time frame is warning of a coming decline towards the $1,500 level.
The weekly time frame shows that a major multi-year trendline breakout will occur if bears move the price below the $2,000 level. Watch out for a strong directional move around this level.
Palladium short-term price trend
Palladium price analysis over the short term shows that bears are in control while the price trades below the $2,480 level.
The short-term technicals surrounding the metal on the four-hour time frame are turning bearish as a head-and-shoulders pattern has formed.
Looking more closely at the pattern, the breakout area is located around the $2,240 level, with sellers now starting to gain traction below the neckline.
The overall size of the pattern suggests that palladium could fall towards the $1,600 area. Watch out for the decline to accelerate if sellers can gain traction below the $2,240 level.
Palladium technical summary
Palladium price analysis highlights that a decline towards the $1,600 to $1,500 area may be on the horizon. Losses under the $2,000 level could trigger a large bearish shift in the metal.