Is palladium a buy or a sell in November?

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Palladium has not become significantly more expensive after the coronavirus crisis
Palladium price has extended its correction from the record highs of $2875 registered in February 2020
As long as the palladium price remains above $2000, this precious metal remains in the “buy” zone

Palladium prices have weakened from $2382 to below $2,200 in the last week of trading and the current price is $2287. Investor attention is currently focused on the U.S. presidential election, and polls show U.S. President Trump’s rival, Joe Biden, is leading the charge.

Fundamental Analysis: Palladium sentiment remains bullish for the long term

Palladium, unlike other precious metals such as gold or silver, did not experience a significant price increase in the wake of the coronavirus crisis. It is important to say that this precious metal is different from gold or silver in terms of investment.

The price of gold and silver usually increases when the economy is in recession. Palladium price charts show the opposite – it goes down when the economy is in a slump.

It is important to note that palladium is a precious and industrial metal. As an industrial metal, palladium is mainly used in the automotive industry, where it acts as a catalyst.

The automotive industry was severely affected by the pandemic and many automotive companies suffered a double-digit decline in sales. The price of this precious metal is currently below the $2,300 level, but the sentiment for palladium remains bullish in the long term.

Concerns about sluggish economic growth amidst the ongoing pandemic continue to dominate the financial markets. The pandemic pushed US hospitals to the edge of capacity as the number of coronavirus cases exceeded 9 million, and investors trading palladium should be somewhat more cautious.

Risk aversion is likely to prevail in the coming days, which is not positive for the palladium price. COVID 19 cases in the US continue to rise, while Europe is not doing any better with this pandemic.

This is certainly not good for the economy and this could put further pressure on palladium prices in the coming days. It is expected that palladium price will continue to be supported in the long term and could even accelerate in November of this year, when the global situation stabilizes.

Pharmaceutical company Pfizer announced that it may have a coronavirus vaccine ready in the United States by the end of this year. Vaccines and treatments are still being researched and developed, but there is no patent solution yet.

Technical analysis: The bulls are focusing on breaking the resistance barrier at 2,300
Data source: tradingview.com

The current resistance levels are $2300, $2400 and $2500, $2200, $2100 and $2000 represent the current support levels. If the price jumps above $2300 it would be a signal to buy palladium and we have the open path to $2350.

A rise above $2400 supports the continuation of the upward trend and the next price target could be around $2500. On the other hand, it would be a strong “sell” signal when the price drops below $2000 and we have the open path to $1800.

Summary

Palladium, unlike other precious metals such as gold or silver, did not experience a significant price increase in the wake of the coronavirus crisis. The palladium price has extended its correction from the record highs registered in February 2020 of over $2,875. Nevertheless, there is no reason to panic, and as long as palladium’s price remains above $2000, this precious metal will remain in the “buy” zone. Should palladium jump above $2300, the next target could be $2350.

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