Technical take on Palladium (XPD/USD)
The commodities have been in focus over the last couple of months with the looming trade war between the U.S. and China and other economical and geopolitical factors effecting the commodity prices. The strong US Dollar (USD) has also played a significant role in keeping commodity prices soft.
The Palladium price has been consolidating over the last couple of trading sessions and it seems that the price is setting up to break through the $ 1004/ ounce level. If we see a break from here the first possible price target could be $ 1047/ ounce on Palladium.
Take note: The technical outlook looks positive as the commodity price is being supported by the 50-day simple moving average (SMA). For the commodity to break higher it needs to breach the $1004 level (the dotted red horizontal line) to confirm the ascending triangle technical set-up. If it fails to break above $1004 the commodity could test the support line from April 2018 to date.
Full trade summary and chart below:
Trade: Palladium (XPD/USD)
- Entry (buy): $ 1011/ ounce.
- Stop loss: $ 982/ ounce.
- Target price 1: $ 1047/ ounce.
Source: Bloomberg
* Barry Dumas, is a Technical Analyst and Researcher at GT247.com, an online broker and authorised financial services provider.
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