Copper Price Looking to Re-Coup Recent Heavy Losses
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Copper Price Forecast, Charts and Analysis
- Copper eying Chinese industrial production data due to at the end of this week.
- Copper price, pausing the downtrend.
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Copper Price – Looking to Correct Higher
On May 29, Copper broke below the Jan 14 low at $5,878. The price continued to trade lower and on May 31, the monthly candlestick closed nearly 9.2% lower at $5,831.
On Jun 5, Copper carved out a lower high at $5,904, however the price slipped back erasing the previous days earnings and printed on Jun 7 its lowest level in nearly five months at $5,742.
The Relative Strength Index (RSI) abandoned the oversold territory on Jun 5 and pushed towards 34 reflecting signs of weakness in the bearish momentum.
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Copper DAILY PRICE CHART (FEB 24, 2019 – JUn 10, 2019) Zoomed In
Copper DAILY PRICE CHART (May 2, 2017 – JUn 10, 2019) Zoomed OUT
Looking at the daily chart we notice copper on Jun 7 failed to test the low end of the current trading level ($5,726 – $5,970) and created a noticeable wick indicating hesitation from the bears to push the price lower.
A close above $5,970 suggests a rally towards $6,088. Although, daily resistances at $6,010 the May 28 high and the 61.8% Fibonacci retracement at $6,063 need to be kept in focus.
In turn, any close below $5,726 could mean more bearishness towards $5,463. However, the weekly supports at $5,670, the Jun 21-17 low at $5,630, the Jun 6 -17 low at $5,653 and the May 18 -17 low at $5,486 should be watched along the way.
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Copper Four-HOUR PRICE CHART (May 8, 2019- JUN 10, 2019)
Looking at the four- hour chart, we notice that bulls are trying today to take the initiative and push the price above the downtrend line originated from the May 28 High at $6,010. If copper breaks above the JUN 5 peak at $5,904 it may rally towards $5,970. Weekly resistance level at $5,947 would be worth monitoring.
On the other hand, we notice the price on Jun 7 rebounded from $5,742. Therefore, any break below this threshold could send the price towards $5,726. A further break below $5,726 could mean more bearishness towards the weekly support at $5,670.
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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.