Copper (HG) Weekly Price Outlook: Downside Move- Where is Next Level to Test?
Copper Price Forecast
- Copper chart and analysis.
- Copper price action
Copper – Sellers Still in Charge
On August 13, Copper (HG) peaked at $5,852 then started a downtrend move creating lower highs with lower lows. On Friday, the metal ended the weekly session in the green however, closed with bearish Doji pattern highlighting the possibility of sellers may keep pressing the price lower.
Alongside this, the relative Strength index (RSI) failed to cross above 50 then pointed to the downside and created lower lows reflecting current downtrend is still intact.
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Copper DAILY PRICE CHART (Nov 19, 2016 – Sep 3, 2019) Zoomed out
Copper DAILY PRICE CHART (May 6 – Sep 3, 2019) Zoomed In
Looking at the daily chart, we notice on August 29 Copper failed to move to a higher trading zone, then reversed course eyeing a test of the low end of current trading zone $5,463 - $5,726.
Hence, a close below the low of the zone end could open the door for more bearishness towards $5,012. However, weekly support levels underlined on the chart (zoomed in) need to be followed along the way.
In turn, any failure in closing below the low end of the zone may change the price’s direction towards the high end. Further close above the high end could mean more bullishness towards $5.975. Although, the weekly resistance area and levels marked on the chart should be kept in focus.
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CoPper Four-HOUR PRICE CHART (Aug 6 – Sep 3, 2019)
From the four-hour chart, we notice we notice on August 23 Copper corrected higher creating higher low at $5,624. Although, yesterday the metal retuned to fall breaking below the aforementioned low.
Thus, a break below $5,486 could send Copper towards $5,362. That said, the low end of current trading zone needs to be considered. See the chart to know more about lower weekly support the price would encounter in a further bearish move.
On the flip-side, a break above $5,670 may push Copper towards $5,754. Nonetheless, the high end of current trading zone should be monitored. See the chart to find out more about higher resistance levels the price would fac in a further bullish move.
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.