Copper sees Largest Daily Range in 6 Months
On Tuesday, PBOC (Peoples Bank of China) announced they are providing 500 billion yuan of liquidity to the largest banks of China. As a result, copper rose heartily on the news to reach a significant technical level.
As we can see from the chart below, there is a daily resistance line at 3.22. When the news of PBOC’s stimulus broke, the metal rose to meet this technical level.
Since then, prices have repelled which gives us a clue about the overall trend. The trend remains lower so long as prices do not break above 3.22.
For those not familiar with why China matters to copper, China is a growing economy and a growing economy will likely build new houses, apartments and offices. These buildings need copper.
Chart created by Jeremy Wagner using FXCM’s Marketscope 2.0
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.