Palladium May Extend Gains to $500/oz.
Source: Bloomberg, Nicholas Larkin (3/10/10)
"The metal. . .is up 16% this year after more than doubling in 2009."
The target of $488 drawn from the metal's 2009–2010 uptrend channel, as well as what Commerzbank calls a "major psychological" level of $500. Prices last traded over $500 in March 2008. Palladium is now breaching its long-term downtrend line.
Palladium climbed to $480 on March 8, the highest price since March 2008. The metal, which traded at $472.15 at 11:32 a.m. in London, is up 16% this year after more than doubling in 2009. The commodity is used in automotive pollution-control devices and for jewelry.
Price gains this week are "short-, medium- and long-term bullish," Axel Rudolph, a technical strategist at Commerzbank in London, said in a report dated yesterday. "We remain near- term bullish as long as the 55-day moving average at $425 underpins the metal."
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