Copper (HG) May Resume Bearish Price Action Below Weekly Support
Copper Price Forecast
- Copper chart and analysis.
- Copper’s price action.
Copper Price – Sellers in Charge
On July 30, Copper (HG) created a lower high at 6,033 indicating the seller’s intention to press the price to test a multi week -low. Since then the metal started to lose value closing in the red in the following trading days.
Alongside this, the Relative Strength Index (RSI) crossed below 50 starting a downtrend momentum. Yesterday, the oscillator rebounded from 30 and remained above the oversold territory.
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Copper DAILY PRICE CHART (Nov 19, 2016 – AUG 6, 2019) Zoomed out
Copper DAILY PRICE CHART (May 6 – AUG 6, 2019) Zoomed In
Looking at the daily chart, we notice on Friday Copper opened with a breakaway gap and fell sharply, printing its lowest levels in near 26 months. Yesterday, the metal continued losing value and moved to the lower trading zone 5,463 – 5,726.
The price may test the high end of this zone. Hence, a close above this level may cause a rally towards 5,792. Further close above it may see the metal even higher towards 5,856. Although, the weekly resistance level underlined on the chart (zoomed in) should be considered.
On the other hand, a close below 5,617 could press the price toward the low end of current trading zone. However, the weekly support level underscored on the chart should be monitored.
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CoPper Four-HOUR PRICE CHART (JuLY 10 – AUG 6, 2019)
Looking at the four-hour chart, we notice at the end of July Copper started a downtrend move creating lower highs with lower lows. Yesterday, the price found support at 5,642 then today corrected higher creating a higher low at 5,650.
Thus, a break below 5,642 may send the price towards 5,553. Nonetheless, the weekly support marked at the chart needs to be watched closely. See the chart to know more about the next support level sellers would encounter in a further bearish scenario.
On the flipside, a break above 5,777 could push the price towards 5,840. However, the weekly resistance marked on the chart should be kept in focus. See the chart to find out more about the next resistance level buyers would face in a further bullish scenario.
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.