Copper Price Outlook: Channel Support Holding, Eyes on the Resistance
Copper Technical Forecast
- Bulls ease up and yet remain in charge
- Bullish signals on Copper price chart
Copper Price – Slowing Bullish Momentum
On Thursday, Copper surged to an over ten week-high at $5,463 then declined after as some bulls seemed to cut back. Nonetheless, the weekly candlestick closed on the following day in the green with a 2.2% gain.
Alongside that, the Relative Strength Index (RSI) fell from 65 to 53 highlighting that bulls were losing momentum.
Copper DAILY PRICE CHART (JULy 17, 2018 – May 29, 2020) Zoomed out
Copper DAILY PRICE CHART (April 17 – May 29, 2020) Zoomed In
On April 21, Copper rebounded from $4,954 then traded in a bullish channel creating a set of higher highs with higher lows . Today, the price eyes a test of the upper line of the channel located on the high end of the current trading zone $5,239- $5,519.
Thus, a close above the high end of the aforementioned trading zone signals that bulls may push towards $5,735. A further close above that level may extend the rally towards $6,012 although, the weekly resistance area and levels underlined on the daily chart (zoomed in) should be considered.
On the other hand, a close below the low end of the zone reflects a weaker bullish bias and could send the price towards $5,010. A further close below that level may send Copper even lower towards $4,484 nonetheless, the weekly support levels and areas underscored on the chart should be monitored.
CoPPER Four-HOUR PRICE CHART (May 1 – May 29, 2020)
On Wednesday, Copper rebounded from the lower line of the bullish channel highlighting bear’s lack of momentum to press lower. Yesterday, the price rallied above the downtrend line originated from the May 21 high at $5,463 and generated a bullish signal.
A break above the May 26 high at $5,405 could trigger a rally towards the high end of the current trading zone discussed above on the daily chart. On the other hand, a break of $5,164 may send Copper towards $5.088. That said, the daily and weekly support and resistance marked on the chart should be kept in focus.
Written By: Mahmoud Alkudsi,Market analyst
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.