European Open: Palladium set to track gold higher?
MATT SIMPSON FEBRUARY 15, 2022 12:25 AM
Whilst gold has stolen a few headlines this week, we see the potential for palladium to make a rally of its own. Palladium rebounds from support cluster
Escalating tensions from Russia’s move on Ukraine has been beneficial for gold prices during risk-off trade. Yet with that comes the potential for increased demand for platinum. We outlined a bullish in our video, although we’re yet to see a daily close above 1050.8 to trigger out bullish bias. And whilst we wait for that to come to fruition, we see the potential for palladium to rise.
Platinum prices rallied an impressive 60% from December’s low to January high before embarking upon a retracement over the past couple of weeks. Despite a bearish outside candle forming on Friday, several technical levels provided support which includes the 100-week eMA, 20-day eMA and October and November highs. Prices have since gapped above the high of the bullish outside candle which strongly suggest the corrective low was seen on Friday. From here we think it can now hold above trend support and head towards 2500.
Reference:
https://www.forex.com/en-ca/market-analysis/latest-research/european-open-palladium-set-to-track-gold-higher/