Copper Price: A Possible Reversal on the Horizon- HG Weekly Forecast
Copper Technical Analysis
- Copper price action
- Copper chart and analysis.
Copper Price – Multi-Month High
On Jan 3, Copper tested its lowest level in three weeks at $6.089. In the following week, the price rallied then closed with 0.9% gain. This week, buyers resumed bullish price action and led the metal to $6.342 -its highest level in over eight months.
The relative Strength index (RSI) rose to 68 then remained flat after highlighting a paused uptrend move.
Copper DAILY PRICE CHART (May 1, 2018 – Jan 17, 2020) Zoomed out
Copper DAILY PRICE CHART (SEP 6 – Jan 17, 2020) Zoomed In
Looking at the daily chart, we notice on Dec 10 Copper broke above the downtrend line originated from the April 17 high at $6.607 then rushed to a higher trading zone $6.084 - $6.303. See the chart (zoomed out).
On Wednesday, Copper reverted back to the trading zone as some buyers showed hesitation and exited the market. This could lead more buyers to pull back and reverse the price’s course towards the low end of the zone. Additionally, we notice a possible bearish divergence as the price created a high and currently developing a higher high meanwhile, the RSI created high with a lower high.
Further close below $6.012 opens the door for sellers to press towards $5.735. Although, the weekly support level and area marked on the chart should be monitored as some traders could exit/join the market at these points.
On the flip side, another close above the high end of the zone may end buyer’s hesitation. This could pave the way to push towards $6.607. In that scenario, the weekly resistance levels underscored on the chart would be worth monitoring.
CoPper Four-HOUR PRICE CHART (Dec 1 – Jan 17, 2020)
From the four-hour chart, we notice that on Jan 14 Copper resumed bullish price action. However, uptrend move could reverse if the price breaks and remains below the neckline of head and shoulders pattern located at $6.258. It’s worth noting that, any rally above $6.342 would negate the pattern.
Thus, a break below $6.216 could send Copper towards $6.172. Yet, the daily support level underlined on the chart should be watched closely. On the other hand, a break above $6.356 may push the metal towards $6.419. Nevertheless, the weekly resistance level underscored on the chart should be considered.
See the chart to know more about the key technical levels in a further bullish/bearish move.
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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.