Palladium (XPD/USD) has eroded the four-month downtrend. Now, the precious metal looks to surpass the October high at $2,207 to extend its move higher.

Key near-term resistance lies at $2,207

“Palladium has eroded the downtrend and is poised to challenge the $2,207 October high. This has so far negated the downside, but a close above $2,207 will be key as it will imply that the market has based and introduce upside scope to at least the 200-day ma at $2,491 and the 55-week ma at $2,452.”

“Dips lower should be now contained by $2,022 short-term uptrend to maintain a positive bias. Failure here would trigger a retest of the $1,848/50 zone”