The short-term bear trend prevails for the precious metal Palladium said an Australia based, Standard Bank report on Wednesday. The market continues recording lower lows and lower corrective highs and, with this in mind, a bearish view is expressed below $256, said the report.
Palladium is likely to encounter support at $190, prompting a minor recovery. Once a break below $190 occurs, the Standard Bank analysts expect the trend to recommence to $166-fulfilling extended objectives off the $590 high.
The report also mentioned that the technical indicators have already entered the oversold territory, but continued weakness through $166 exposes the market towards $140.
Palladium is likely to encounter support at $190, prompting a minor recovery. Once a break below $190 occurs, the Standard Bank analysts expect the trend to recommence to $166-fulfilling extended objectives off the $590 high.
The report also mentioned that the technical indicators have already entered the oversold territory, but continued weakness through $166 exposes the market towards $140.
"We are not forecasting a break below $140, and therefore expect palladium to establish a support base between $166 and $140, and enter a period of sustained corrective strength. In the event of a break below $140, the next support point is situated at $114-the 1996 low. Resistance between $302 to $305 is regarded as a pivotal area," said the Standard Bank report.
A break higher will indicate a near-term trend reversal, turning the outlook positive, the report said.
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