Palladium's Turbulence: How A Breach Of Major Support Signals Unprecedented Market Instability And A Possible Price Slide To $1000

• Palladium reached an all-time high of $3433 in March 2022 but subsequently underwent a significant decrease in value, demonstrating the volatility of commodity assets.
• From its all-time high, the price of Palladium has now decreased by over 58%, and if buying sentiment does not change, the price may continue to fall towards the $1000 mark.

Palladium has had its ups and downs over the past two years, serving as a perfect example of how quickly and suddenly commodity assets can fluctuate.

While March 2022 saw palladium reach an all-time high of $3433, the precious metal quickly descended, forming bearish market conditions. The bears have maintained control ever since, gradually driving down the price over the past year.

Following the reversal from the all-time high, a severe drop saw price plummet below the $3000 psychological support, which was initially seen as a safety net to prevent further declines.

By the end of March 2022, price had fallen 34% from the peak of the all-time high.

In 2022's final quarter, the downward move continued, and breached the crucial level of $2000 in October of that year.

This marked a significant change of fortune for the commodity that had started the year with high expectations.

When market conditions are volatile, it's essential to identify key price levels that could indicate a change in the trend's direction.

Palladium's key level was the support low of December 2021 at $1543. However, in February 2023, a significant bearish move broke through this level, and the month ended 9% down.

This breach turned the previous support of $1543 into a formidable resistance, preventing price from bouncing back up.

This resistance has remained firm for the last four months, and has caused palladium prices to fall further to a low of $1305.

This level has not been reached in four years and indicates potential further weakness for this commodity.

Looking at the larger picture, the price of palladium has now dropped by over 58% from its all-time high, adding to the belief that it could keep falling.

Unless there's a noticeable change in buying sentiment, price may continue to plummet towards the $1000 round number. This marks a significant departure from the earlier bull-dominated market days of 2022.

After the closing bell on Monday, June 19, the commodity closed at $1403.50, trading down by 0.78%.