Talking Points:
- Copper Prices Rejected After Trading to New Highs
- Next Support For Copper Found at $ 2.4930
- Looking for additional trade ideas for commodities markets? Read our DailyFX Price Forecast
Copper prices have finally been rejected after trading to a new 2016 high of $2.7333 per pound. While this bullish move is significant, traders are focusing on Copper prices now looking to close the day lower. If the market closes near present levels, this would be the first daily decline in Copper over the last 7 trading sessions.
Going into next week's trading, traders may look at today’s long wick as a change in market sentiment. While this remains a possibility, traders should look for a turn in price through values of support before calling a shift in the overall trend. On the daily chart below, Copper prices should next challenge support near $2.4930. This point was previously acting as daily resistance for Copper, and is denoted in the graph below as the September 17th daily high.
Copper Prices, Daily Chart Rejection
(Created Using TradingView Charts)
In the event of a turn lower, traders should watch for Copper to trade back inside of the highlighted trading range. This range was discussed in last week’s Copper update, and a return in price below $2.3169 would suggest a change in the present market conditions. Not only would this eliminate this week’s gains, but possibly suggest a resumption of a broader daily downtrend.
However if prices remain supported above present levels, traders may look for Copper prices to resume its trend in next week’s trading. It should be noted that prices must exceed today’s high to signal a resumption of the current bullish trend. As such, traders may also look for price consolidating below today’s highs. This may signal a reduction in volatility and may.
--- Written by Walker, Analyst for DailyFX.com
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