Copper (HG) Price Weekly Forecast: May Rally Above the Weekly Resistance
Copper Price Outlook
- Copper chart and analysis.
Copper – Trendless Move
At the start of August, Copper (HG) resumed bearish price action then declined to $5,642 – its lowest level in over 25 months. The metal corrected last week higher creating a higher low at $5,709 then stuck in a sideways move.
Alongside this, the Relative Strength Index (RSI) pointed higher from the boarders of the oversold territory, nonetheless, the oscillator has not been able to cross over 50, highlighting the buyer’s lack of momentum to start upward move, with the weakness of sellers to send the price lower.
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Copper DAILY PRICE CHART (Nov 19, 2016 – AUG 20, 2019) Zoomed out
Copper DAILY PRICE CHART (May 6 – AUG 20, 2019) Zoomed In
Looking at the daily chart, we notice since August 8 Copper has been moving in the trading zone $5,726 - $5,856. It’s worth noting the price has been testing nearly everyday the low end of the zone failing to close below.
Thus, if copper’s failure to close below the low end continues then the price may rally towards the high end. Further close above the high end could send the metal towards $5,975. Although, the weekly resistance levels marked on the chart need to be watched along the way.
On the other hand, a close below the low end could press the price lower towards $5,617 however, the weekly support levels underlined on the chart need be followed closely. Further close below $5,617 could see the price trading even lower towards $5,463.
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CoPper Four-HOUR PRICE CHART (JuLY 10 – AUG 20, 2019)
Looking at the four-hour chart, we notice since August 6 Copper has been moving in an uptrend channel. Yesterday, the price broke below this channel however, retuned back today.
Thus, a break above $5,768 may send the price towards $5,840 - possibly the high end of the channel. See the chart to find out more about the higher resistance levels the price would encounter in a further bullish scenario.
On the flip side, a break below the August 13 low at $5.709 could send the price towards $5,642. Although, the weekly support level marked on the chart should be kept in focus. See the chart to know more about the lower support levels the price would face in a further bearish 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.