Talking Points:
- Copper Prices Rally to Monthly Highs
- Intraday Breakouts Begin Above 2.6359
- Next Resistance for Copper is at 2.7342
Copper prices are trading higher this morning, moving the commodity towards new monthly highs. Today’s move marks the first significant rally in copper since the metal put in its most recent daily swing low at 2.5342. If copper continues to advance, traders will next look for prices to exceed the standing 2016 high at 2.7342. However if prices are rejected near present levels, it may suggest that a broader consolidation pattern is emerging prior to the markets next breakout. In this scenario, traders may look for Copper to retest the previously mentioned swing low.
Copper Price, Daily Chart
(Created Using TradingView Charts)
Technically, intraday Copper prices have been advancing rapidly since bouncing off of support early in today’s session. Support may in the graph below is represented by the S3 pivot near 2.6010 and the S4 pivot at 2.5892. Currently, prices are trading well above resistance which is marked by the R4 pivot at 2.6359. As such traders may elect to maintain a bullish bias above this value, while considering fresh breakout or retracement entries.
In the event of a bearish price reversal, Copper prices should first be seen declining back beneath 2.6359. However a shift back below today’s R3 pivot at 2.6237 would suggest a noteworthy change in market conditions. In this scenario, traders may begin looking for Copper prices to descend back towards the previously mentioned values of intraday support.
Copper Price 1 Hour Chart with Pivots
(Created Using TradingView Charts)
--- Written by Walker, Analyst for DailyFX.com
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