The metals space has seen plenty of volatility this week, as traders and investors scramble to reprice safe-haven asset classes amidst uncertainty from the spread of the coronavirus.
Palladium price analysis shows that the breakout rally in the metal has caused large amounts of bearish RSI and MACD price divergence.
Palladium medium-term price trend
Palladium recently rallied to a new all-time record high, just above the $2,850 level, as the breakout rally in the metal showed few signs of stopping.
Few metals have yielded the type of gains that palladium has given to investors over recent years, following its three hundred percent rise since 2017.
Palladium price analysis shows that bearish RSI price divergence has been building over recent weeks, hinting that a minor technical pullback may be due.
Technical analysis shows that bearish RSI price divergence on the daily time frame extends down towards the $2,500 level.
It is also worth noting that palladium is trading in unchartered waters, making it increasingly difficult to predict the upside targets.
The weekly time frame showed that a huge multi-year trendline breakout occured when the $1,990 level was breached in January. This may be the ultimate entry for traders looking for a pullback to buy the metal.
Palladium short-term price trend
Palladium price analysis over the short term shows that bulls are in control while price trades above the $2,420 level.
The short-term technicals surrounding the metal are very bullish, however, a double-top pattern is forming on the four-hour time frame.
With this in mind, bulls must be cautious that a correction may occur while price trades below the $2,855 level.
To the upside, breakout above the $2,855 level could see palladium bulls testing towards the psychologically important $3,000 level.
Palladium technical summary
Palladium price analysis highlights that a pullback towards the $2,500 level may occur due to the presence of bearish RSI price divergence on the daily time frame. Gains above the $2,855 level could prompt a test of the $3,000 level.
