Bounce higher seen as corrective while below 200-DMA at $2574 – Commerzbank

Palladium sold off sharply recently, reaching a low of $2270 before bouncing higher. But the current rebound higher remains corrective only while capped by the 200-day moving average at $2574, in the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

Moves higher still viewed as corrective only

“Currently, the rebound remains in the realms of a correction only and the automatic wave counts are implying a move to the $2539 band. Given that the 200-DMA lies at “2574, we will retain a neutral bias while capped here.”

“Below $2270 we would allow for further weakness to the $2202.99 25th January low. This guards the 2018-2021 support line at $2089. A close below here is needed for us to fall into the bear camp.”

“Rallies will find initial resistance at $2573 the 20th July low and $2740 the 23rd July high.” 

“A close above $2881.42 is needed to target the $3020 May high.”