• Palladium consolidates weekly losses inside the key moving average envelope.
• Bullish Momentum suggests further consolidation of September’s losses.
• Multiple descending trend lines challenge the buyers beyond 50-DMA.

Palladium (XPD/USD) holds onto gains above $2,000, up 0.53% intraday around $2,013 as European traders brace for Friday’s bell.

In doing so, the precious metal marks the second bounce off 21-DMA while staying below 50-DMA. However, the firmer Momentum line hints at a slow grind to the north after the last month’s fall.

Though, downward sloping trend lines from September 01 and July 12, respectively around $2,125 and $2,220, add to the upside filters, beyond the 50-DMA level of $2,093, to challenge the XPD/USD bulls.

Meanwhile, a downside break of the 21-DMA level, close to $1,998 by the press time, may take a halt around early October’s swing high near $1,917 before challenging the monthly low near $1,850.

It’s worth noting that multiple stops around September’s bottom close to $1,848-49 may question the palladium bears afterward, a break of which will direct the quote towards May 2020 lows near $1,770.

Overall, palladium prices stay on course to recovery but with a bumpy road ahead.

XPD/USD: Daily chart

Trend: Further recovery expected