Copper Price Forecast: Sellers Eye a Test of Multi-Week Low
Copper Price Forecast
- Copper chart and analysis.
- Copper’s price action.
Copper Price – Correcting Lower
Last week Copper’s uptrend corrected lower and created on Thursday a lower high at $6,053, highlighting the possibility of the sellers could be preparing to lead the price.
The Relative Strength Index (RSI) dropped last week from 60 to 50 and remained flat after. A cross below 50 would be a sign for a possible start of a downtrend momentum.
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Copper DAILY PRICE CHART (May 15, 2017 – JUly 29, 2019) Zoomed out
Copper DAILY PRICE CHART (May 6 – JULY 29, 2019) Zoomed In
Looking at the daily chart we notice on Friday Copper slipped to the lower trading zone $5,911 - $5,975. Hence, the metal currently eyes a test of the low end of this zone, contingent on remaining below the high end. Further close below the low end of this zone could send the price towards $5,856. Although, the weekly support level underlined on the chart (zoomed in) needs to be considered.
On the flip-side, a close above the high end means a return to the old trading zone and opens the door to rally towards $6,030. However, the daily resistance underscored on the chart (zoomed in) Should be watched closely. See the chart to know more about the higher trading zone in a further bullish scenario.
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CoPper Four-HOUR PRICE CHART (JuLY 9 - JULy 29, 2019)
Looking at the four-hour chart, we notice on Friday Copper closed below the head and shoulders sloping to the upside, since then the price remained below this level. If Copper continues trading below $5,971 this suggests the price may be on its way for a test of the July 9 low at $5,792.
Meanwhile, a break below the July 17 low $5,928 could press the price towards $5,879 contingent on clearing the low end of the aforementioned trading zone (see the chart).
On the other hand, a break above $6,008 may push the price towards the high end of the right shoulder. Although, the weekly level marked on the chart should be kept in focus. See the chart to know more about the next key resistance levels if the rally continues above the right shoulder.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.