Palladium is at a major support zone

New York (Dec 15)  Palladium is still in a heavy bear market at the moment. The semi-conductor shortage has hit the automotive industry very hard. This has then had a knock-on effect for Palladium as it is a major component in new vehicle production. At the moment the price has fallen 47% since the high marked by the purple resistance zone at $3010.63/oz.

From a technical standpoint, the daily chart below is showing a big support zone in the red area where the price is right now. The price bounce very hard on 16th March 2020 with an absolute low of $1501/oz. The price has been making significant lower highs and lower lows for eight months now. In terms of round numbers, $1500/oz is a very important support level too. In terms of the next level under the red area, there is a consolidation low at $1269.2/oz. All in all, any news on the semiconductor shortage will be important for this chart but palladium producers may also start to reduce production levels as the price could get too close to production.

Reuters