• Palladium futures at risk of broad bearish trend resumption

• Oversold signals detected, eyes on the 945 floor

Palladium futures (March delivery) confirmed a bearish double top pattern near the 200-period simple moving average (SMA) in the four-hour chart after the slump below the 1,045 neckline last week.

The price slid as low as 961 on Monday, bringing November’s five-year low of 945 on the radar again. Note that RSI has crossed below its 20 oversold level, suggesting that selling appetite could soon fade.

A step below the 945 base could upset traders, causing another downfall to 925. Slightly lower, the 900 psychological level could attract greater attention given the presence of the June 2022 support line in the region. Should sellers claim that line too, the price could next stabilize within the 850-860 zone, last active during June 2017-August 2018.

In the opposite scenario, the bulls could aim for a close above the nearby resistance of 78.25. A victory there could provide direct access to the 1,000 round level, where the 61.8% Fibonacci retracement of the previous downleg is located. The 1,020-1,045 territory could delay any extensions towards the 1,096 ceiling.

Summing up, palladium futures have erased November’s advance to trade near multi-year lows. A step below the 945 floor could generate fresh selling, bringing the 2022 downtrend back into play.