Palladium’s futures price could not beat the value of $1400/oz during the last local bullish correction. It began on March 29 simultaneously with Norilsk Nickel, the world's largest producer of palladium, decision to invest in growth promising projects. The projects include expansion and reconstruction of the Talnakhsky concentrator and the development of the Southern Cluster. The total investment will be approximately $1.4 billion. After the Southern Cluster reaches its targets, the project will provide an additional 20 tons of platinum group metals per year, which is comparable with the top world production leaders by volume, as well as nickel and copper by-products. This will clearly be a large production benefit for Norilsk Nickel in 4-5 years.
Palladium is currently re-testing the $1275-1310 zone. The spread between June futures on the NYMEX and XPDUSD spot price is around $30-40 and seems to be stable. It is possible that $310 level will hold on. This hypothesis is confirmed by bullish divergence on the 4H chart. Whether speculative sales have ended or a dead cat's jump to $1400 has become a bull trap will be clear in the next trading sessions.