Palladium jumps to new all-time highs, on its way to $ 3,000

• Palladium prolonged its recent bullish move and soared to new all-time highs on Thursday.
• Lingering supply concern supports prospects for a further short-term appreciation move.
• Overloaded technical indicators warrant some consolidation before the next move.

Palladium it shot to new all-time highs in the past hour, with the bulls now eyeing a move towards the conquest of the $ 3,000 level.

A deepening fundamental supply-demand imbalance in the market has been driving a strong rally for the last month or so. With spot prices gaining more than 20% this year, palladium is now the best performing precious metal and appears poised to extend the upward trajectory amid lingering supply concerns.

Even from a technical perspective, the recent upward movement along a multi-week up channel points to a well-established uptrend and supports the prospects for additional gains. That said, the extremely overloaded technical indicators warrant some near-term consolidation before the next stage of a positive move.

Meanwhile, any corrective pullback could now be seen as a buying opportunity near the overnight lows, around the $ 2,900 mark. This should now act as a strong foundation for palladium, which if decisively broken could trigger profit-taking and accelerate the slide towards channel support, currently near the $ 2,865-60 area.

4 hour chart

Technical levels