Copper Braces For More Losses - (HG) Price Weekly Forecast
Copper Price Outlook
- Copper chart and analysis.
Copper – Sudden U- turn
On Nov 7, Copper (HG) rallied towards $6,011- its highest level in over three months. However, on the following day the price changed course then settled below $6,000 handle.
Alongside this, the relative Strength index (RSI) declined from 63 to 50 highlighting a possible end of current uptrend momentum.
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Copper DAILY PRICE CHART (Nov 19, 2016 – Nov 13, 2019) Zoomed out
Copper DAILY PRICE CHART (May 6 – NOv 13, 2019) Zoomed In
Looking at the daily chart, we notice on Nov 8 Copper declined to the lower trading zone $5,726 - $5,975. On Monday, the price fell eyeing a test of the low end of the zone.
Thus, a close below the low end could see Copper trading even lower towards $5,463. Although the weekly support area and levels marked on the chart (zoomed in) should be considered.
In turn, any failure in closing below the low end of the zone change the price’s course sending it towards the high end of the zone. Further close above the high end could embolden buyers to lead Copper towards the vicinity of $6,074-88 contingent on clearing the weekly resistance area underlined on the chart.
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Copper Four-HOUR PRICE CHART (Aug 6 – Nov 13, 2019)
From the four-hour chart, we notice yesterday Copper failed to return to uptrend channel originated from early October. This started a downtrend move creating lower high with a lower low.
Thus, a break below the Oct 31 low at $5,780 could continue bearish price action towards the Oct 17 low at $5,706. Although, the low end of the trading zone discussed above on the daily chart should be watched closely.
On the other hand, a break above yesterday’s high, i.e. above $ 5,923 could correct downtrend move towards $5,975. Nevertheless, the daily resistance level underscored on the chart would be worth monitoring.
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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.