Palladium Price Analysis: XPD/USD bulls challenge 20-day SMA near $2,420

• Palladium edges higher in the early European session on Monday following the previous week sell-off.
• Price moves in ascending price channel face resistance near 20-day SMA.
• Momentum oscillator remained in oversold zone with the bullish sentiment.

Palladium (XPD/USD) edges higher on Monday, following the previous session’s momentum. The metal prices hover in a very narrow trade band with a bullish sentiment.

At the time of writing, XPD/USD is trading at $2,411, up 0.23% for the day.

Palladium daily chart

On the daily chart, the metal moves in the ascending trend from the lows of $2,260 on August 23. The formation of ‘Spinning Top’ near the high of $2,471 resulted in the price correction back to $2,390.

The metal took shelter near the lower bullish slop line, below the 20-day Simple Moving Average (SMA) at $2,416.21.

Being said, prices could move back to the $2,430 horizontal resistance level.

Next, the bulls will attempt to retest the $2,475 horizontal resistance level followed by the psychological $2,500 level.

Alternatively, if price sustained below the mentioned ascending trendline, it could test the $2,375 horizontal support level.

Any downtick in the Moving Average Convergence Divergence (MACD) would amplify the selling pressure toward the $2,350 horizontal support level.

The next area of support would be the key support area around the $2,300 level.

Palladium additional levels