Palladium's Stunning Turnaround - How This Precious Metal Bounced Back Over 7% In A Mere Two Days And What It Means For Investors

• Palladium prices experienced a meteoric rise between 2018 and 2020, increasing from $900 to a peak of $2875, making it a highly sought-after commodity.
• Since the pandemic, buyers have struggled to regain momentum, with a brief attempt to revive the bullish trend in April 2021 and a record high of $3433 in March 2022, both short-lived.
• Recently, impulse buying pushed the price above the key $1501 level, disrupting the downtrend and indicating the possibility of this level acting as support for a potential long-term uptrend.

Palladium prices skyrocketed in an incredible fashion between 2018 and 2020, turning this precious metal into a highly desirable commodity. From $900 to over triple the amount at its peak of $2875, it seemed as if there was no end in sight for palladium's bull run.

As we know, with the markets, an asset never continues in one direction forever. At least not without blocks in the road, causing some turbulence.

The $2875 peak was reached while the pandemic was unfolding in 2020, and then we saw a sharp drop in price to $1501 by March 2020.

Ever since the pandemic disrupted the flow of the bull trend in palladium, the buyers have not been able to regain the momentum they once had.

In April 2021, there was an attempt to ignite some of that bullish momentum back into the market, but that was short-lived. Then again, just under a year later, March 2022 saw price experience a massive surge to the upside. Price broke the record high, creating a new one at $3433 before crashing back down again.

When price broke below the March 2020 low in February 2023, to investors, it did seem as though we were in for a bear trend, as there was already a downtrend in play for four months prior to this break.

However, looking at price action at the start of the week, impulse buying took over, and the support, now resistance at $1501, was broken again with a move up of 7%. Price popped its head above this level, disrupting the flow of the downtrend.

Now that price is back above this key level, there is the possibility it could be used as support which in turn could help the price of this commodity bounce back into a long-term uptrend.

After the closing bell on Thursday, April 20, the commodity closed at $1585.50, trading down by 1.88%.