Copper Technical Analysis | Forexlive

Copper broke out of the
triangle in the first part of the week and triggered a rally into the next
resistance defined by a trendline. The recent positive Chinese activity data
could have been the catalyst for the breakout which triggered momentum buyers
to join the bullish wave. Overall, the picture is still murky, and the global
growth outlook is more likely to weaken with the central banks keeping monetary
conditions tight.

Copper Technical Analysis –
Daily Timeframe

On the daily chart, we can see that Copper broke
out of the triangle in the
first part of the week and rallied into the trendline formed
with the fakeout from last August. The price got rejected at the first try as
the rally was a bit overstretched and needed a bit of a pullback. We can expect
the sellers to keep leaning on this trendline to position for a drop back into
the 3.55 support.

Copper Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that after the
rejection the price bounced on the upward trendline where there was also the
50% Fibonacci retracement level
for confluence. The
buyers will want to see the price breaking above the major downward trendline
to increase the bullish bets into the 3.90 level. The sellers, on the other
hand, will want to see the price breaking lower to increase the bearish bets
into the 3.55 support.

Copper Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the current price action. We will likely see some consolidation inside
these key levels with market participants waiting for a breakout. The playbook
looks clear though: a break to the upside is likely to lead to a rally into the
3.90 level, while a break to the downside should trigger a correction at least
into the 3.75 support.

Upcoming Events

Today the US will be on holiday for Thanksgiving Day
and therefore the liquidity in the market will be thinner. Tomorrow, we
conclude the week with the US PMIs where weaker data is likely to put some
pressure on Copper, while strong figures should support it in the short-term.