Copper Technical Analysis - We are at a key support

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Copper Technical Analysis - We are at a key support

Copper continues to trade
within a major triangle as the uncertainty around the global economy remains
high. In fact, on one hand we have the Chinese trying to stimulate the economy
with the recent economic indicators showing positive signs, while on the other
hand, we have the other major economies weakening due to restrictive monetary
policies and inflationary pressures. As long as the picture remains so mixed,
we are likely to continue to see a rangebound price action.

Copper Technical Analysis -
Daily Timeframe

On the daily chart, we can see that Copper
continues to trade within the symmetrical triangle with the
price recently trying some downside breakouts. There is still lots of
uncertainty around the global economy, so we are likely to keep on seeing this
choppy price action until something big happens that points clearly into a
certain direction. For now, traders should keep a close eye on this pattern as
a breakout might lead to a big move.

Copper Technical Analysis -
4 hour Timeframe

On the 4 hour chart, we can see that the price
recently bounced on the lower bound of the triangle and tried a rally into the
upper bound. The price failed to reach it completely and sold off into the
lower bound again. To avoid fakeouts, we have another trendline
connecting the most recent failed breakouts. If the price falls below the
trendline, then we are likely to get a real breakout and the sellers should
pile in aggressively to ride the big bearish wave.

Copper Technical Analysis -
1 hour Timeframe

On the 1 hour chart, we can see that the
price bounced on the trendline and it's now approaching the downward trendline
where we have also the confluence with
the 38.2% Fibonacci
retracement level. This is where we can expect the
sellers to pile in with a defined risk above the trendline to try again another
breakout. The buyers, on the other hand, will want to see the price breaking
above the trendline to position for a rally into the upper bound of the
triangle.

Upcoming Events

This week has a few important economic releases that can
have an impact on Copper. Today, the Fed is expected to keep rates unchanged
with the market focusing more on the Dot Plot and Powell's press conference,
where he's likely to reaffirm their data dependency. Tomorrow, we will get the
latest US Jobless Claims report and much worse than expected data should weigh
on Copper while better than expected figures are likely to keep it supported.
Finally on Friday we conclude the week with the PMIs data for many major economies
like the US, Eurozone and the UK. Again, weak data is likely to send the
markets into risk off and lead to weakness in Copper, while strong data should
provide some relief.

                This article was written by FL Contributors at www.forexlive.com.

Source: Copper Technical Analysis - We are at a key support

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