Copper price has fallen more than 20% so far this year.
Copper trading higher: It is trading higher by 0.60% on Friday morning at 2.668, manages to hold 20MA.
Since last few weeks, we see the price manages to hold the 200MA (weekly) on a weekly closing basis. The outlook remains neutral-bullish; descending triangle pattern has developed in the weekly and daily charts. Weekly studies RSI and oscillator have been turned bullish along with the daily chart studies.
Under the given conditions, the price can be expected to break out of the resistance levels around 50MA before eyeing the ones at 2.7610 August 28 high. A breakout above this last resistance level would point to a new acceleration of the near-term uptrend towards 2.8190 and 2.8600 it’s 38.2 fib reaction (3.3300-2.5700 fall).
Caution will be order; if the price does not rebound beyond the 2.7610, this will point to a new downward wave towards the support at 2.4980 its 50MA (Monthly) and 2.4710 its 61.8fib reaction of 1.9370-3.3300 rally.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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