Palladium – Is the Rally Higher Only a Correction?

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The Fed announcement on Sunday put relief into the markets and palladium made full use of the news. It orchestrated on the best weekly rally it ever had.

From a low of $1,600 to a high print of $2,418, so far the movement has been a marvel in itself.

This is only overshadowed by the drop of $915 it had on the second week of the same month.

The 8-hour chart above suggests that we have come to a potential end of the current rally (circled in red). This is where either the correction to the higher side ends, or it looks poised to test close to $2,800 handle.

In case of a correction, a move lower to $2,100 followed by $1,950 would be sought after for starters.

The hourly chart below suggests that if we hold under $2,425, we can see a test of $2,250 with further potential to $2,200. There is an extension of the resistance up to $2,450.

palladium

Alternatively, a break and a close higher would make way for further gains.

Overall, it looks bullish. However, if we can hold on to the current highs, we can potentially look forward to a decent swing play coming up on the pair.

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