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HomeTrading FocusedTechnical OutlookCopper Technical Analysis

Copper Technical Analysis


Copper has experienced a significant rally over the past few weeks, indicating strong bullish momentum in the market.

Copper lost most of its gains from the PBoC 5-yers LPR cut, but this could be an opportunity for those who missed the rally to position for new highs. Central banks are easing monetary policies, which should support the commodity. As long as global growth remains resilient, the bias is expected to remain bullish.

Daily Timeframe

The daily chart shows Coper bouncing back into the red 21 moving average, indicating a potential rally into new highs. The price is currently in a significant range between the 3.72 support and 3.95 resistance, requiring further analysis to understand the specifics.

4 hour Timeframe

Yesterday’s price broke above the downward trendline and extended into a recent high at 3.86, where the 38.2% Fibonacci retracement level for confluence is located. Sellers may position for a drop into new lows, while buyers will want the price to break higher to invalidate the bearish setup and increase bullish bets into the 4.00 handle.

1 hour Timeframe

The 1 hour chart shows a leg lower diverging with the MACD, indicating weakening momentum and pullbacks. This led to a pullback into the 3.86 resistance. A break above the resistance confirms the reversal, giving buyers more confidence for a rally into new highs. Sellers want the price to break below the minor upward trendline, invalidating the bullish bias and increasing bearish bets into new lows.

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