Copper Weekly Technical Forecast: Price Eyes Testing Monthly Support
Copper Technical Outlook
- Copper’s bears could press the price to its lowest in 2020
- Key levels and thresholds to monitor
Copper Price – Bears still in Charge
Last week, Copper rallied to $5.829 – its highest level in three weeks. However, the price retreated after then closed on Friday the weekly candlestick with a Doji pattern highlighting the market’s indecision at this stage.
Alongside that, the Relative Strength index (RSI) remained flat below 50 signaling a weak downtrend momentum.
Copper DAILY PRICE CHART (April 30, 2018 – FEb 27, 2020) Zoomed out
Copper DAILY PRICE CHART (OCt 12 – FEb 27, 2020) Zoomed In
Looking at the daily chart, we notice in early February Copper rebounded from $5.527- its lowest level in five months. The price rallied after as bears seemed to cover. This week bears came back as Copper opened with a gap to the downside and moved to a lower trading zone $5.519- $5.735 eyeing a test of the low end of it.
Thus, a close below the low end of the zone could mean more bearishness towards $5.239. Further close below that level may encourage bears to press Copper towards $5.010. That said, the weekly support levels underlined on the chart (zoomed in) should be considered.
On the other hand, any failure in closing below the low end reflects bear’s hesitation. This could lead some of them to exit the market and repeat the aforementioned early February scenario i.e. reverse the price direction towards the high end of the zone. Further close above this level may cause a rally towards $6.012. Yet, the weekly resistance levels underscored on the chart should be watched closely.
COPPER FOUR-HOUR PRICE CHART (Jan 23 – FEb 27, 2020)
From the four-hour chart, we noticed that on Feb 21 Copper resumed bearish price action creating lower highs with lower lows.
A break below, $5.463 could send the price even lower towards $5.355. Although, the weekly support level marked on the chart would be worth monitoring. On the flip side, a break above $5.854 may cause a rally toward $5.986. Nevertheless, the weekly resistance level printed on the chart should be kept in focus.
See the chart to know more about the key technical levels in a further bullish/bearish 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.