Copper Technical outlook
- Bull’s lack of momentum
- Negative outlook while below $6,303
Last week, Copper hit an over four-week low of $6,227. Ultimately, a weekly candlestick closed in the red with a 2.3% loss. Alongside that, the Relative Strength Index (RSI) fell from 62 to 43 highlighting a possible start of a bearish momentum.
Copper DAILY PRICE CHART (JULy 17, 2018 – August 11, 2020) Zoomed out
Copper DAILY PRICE CHART (May 24 – AUgust 11, 2020) Zoomed In
Last week, Copper failed on multiple occasions to rally to the higher trading zone repeatedly rebuffing efforts to put bulls back in charge. On Friday, the price tumbled to the lower trading zone, however this week the market rallied back to the current $6,303- $6,507 trading zone.
A daily close above the high end of the zone could encourage bulls to rally the price towards the monthly resistance level at $6,777 ( December 4 2017 Low).
On the other hand, a daily close below the low end of the zone may guide Copper’s fall towards the weekly support level at $6,081 ( January 2019 high).
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COPPER FOUR-HOUR PRICE CHART (June 24 – August 11, 2020)
On Friday, Copper traded below the bullish trendline support originated from the July 3 low at $5,978 indicating a shift in favor of bear’s to control which has thus far held.
To conclude, while the Copper’s outlook is still neutral a break below $6,227 generates a bearish signal and may send the price towards $6,155, while a break above $6,537 may cause a rally towards $6,633. As such, the support and resistance levels marked on the chart should be watched closely.
Written By: Mahmoud Alkudsi,Market analyst
Please feel free to contact me on Twitter: @Malkudsi