Copper Price May Probe Two-Year Low
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Copper Price Forecast
- Copper charts and analysis.
- Copper price may resume its bearish momentum.
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Copper Price – Bulls Hesitation
On June 11, Copper’s attempted to re-coup recent heavy losses. The price rallied towards $5,965 then declined and closed with a bearish Doji pattern, emphasizing the bull’s hesitation to push even higher.
Alongside, the Relative Strength Index (RSI) remained below 50 showing lack of momentum to kick start an upwards trend.
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Copper DAILY PRICE CHART (FEB 24, 2019 – JUn 17, 2019) Zoomed In
Copper DAILY PRICE CHART (Apr 26, 2017 – JUN 17, 2019) Zoomed OUT
Looking at the daily chart we notice Copper’s U turn on June 11 hinting towards the low end of the current trading zone ($5,726 - $5,970). Hence, a close below this level could send Copper towards 112.20% Fibonacci extension at $5,618. However, the weekly support at $5,670 would be worth monitoring.
In turn, a close above $5,856 suggests Copper might rally towards the June 11 high at 5,956. Although, the weekly resistance at $5,900 need to be kept in focus.
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Copper Four-HOUR PRICE CHART (May 30, 2019- JUN 17, 2019)
Looking at the four-hour chart, we notice Copper shifted course on June 11 after creating a higher high at $5,956. Since then the price pointed lower creating lower high’s and lower lows. Therefore, a break below $5,726 will lead the price to print its lowest level in nearly two years and may send it towards $5,670. Although, the weekly support at $5,697 needs to be monitored. See the chart for key technical levels if the selloff continue below $5,670.
On the flipside, if Copper rallies above $5,856 it could continue towards $5.900. However, the weekly resistance located in the vicinity $5,879/85 should be watched closely. See the chart for key levels if the rally continues above $5,885.
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.