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Palladium Technical Analysis - Palladium Trading: 2022-05-04
Palladium Technical Analysis Summary
Below 2080
Sell Stop
Above 2550
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Sell |
| Bollinger Bands | Neutral |
Palladium Chart Analysis
Palladium Technical Analysis
On the daily timeframe, XPDUSD: D1 is in the neutral range. It must be broken down before opening a position. A number of technical analysis indicators have formed downward signals. We do not rule out a bearish movement if XPDUSD drops below the last down fractal and lower Bollinger band: 2080. This level can be used as an entry point. The initial risk limit is possible above the last upper fractal, the upper Bollinger band, the 200-day moving average line and the Parabolic signal: 2550. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (2550) without activating the order (2080), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Precious Metals - Palladium
The Fed's rate hike could reduce the attractiveness of precious metals. Will the XPDUSD quotes continue to decline?
Investors expect the Federal Reserve System (Fed) rate to rise to 1% from 0.5% at the May 4 meeting. Against this background, the 10-year Treasury yield reached 3% per annum. An additional negative for palladium could be a reduction in new car sales in European countries. This metal is used in gasoline engine catalysts and is now much more expensive than gold. Passenger car sales in Europe fell 19% year-on-year to 1.13 million in March, according to the European Automobile Manufacturers Association (ACEA). Recall that earlier ACEA predicted an increase in car sales by the end of 2022 by 8%. This was a significant factor in the growth of palladium quotes, since approximately 70% of the metal produced is used in the automotive industry. In addition to European countries, car sales in the 1st quarter of this year significantly decreased in the USA (-12.3%) and Japan (-14%). Note that palladium is almost never used in electric vehicles. This may become a risk factor for its quotes if the growth in sales of electric vehicles continues.
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