Support Level Stability in Question
The price of copper is facing a significant threat to the stability of the $4.3500 support line. This development is influenced by the stochastic oscillator, which remains in oversold territory, indicating potential further downside. Additionally, the 55-day moving average (MA55) is approaching the current support level, countering recent negative trends.
Contradictory Indicators Suggest Neutral Stance
Given these dynamics, along with the ongoing contradiction among major technical indicators, a neutral stance is advisable until a clearer signal emerges. Confirmation of the main trend will require a decisive move—either breaking below the support line and maintaining that position, which would pave the way for further declines to targets around $4.2200 and $4.0500, or rallying above the $4.5000 resistance. A successful upward breach would signal the start of a bullish rally, aiming initially for $4.6800 and potentially reaching the $4.8200 barrier.
Expected Trading Range
For the near term, the anticipated trading range for copper is between the $4.3000 support and $4.4500 resistance.
Related topics:
Copper Futures Dip on Strong Dollar, But Set for Weekly Gain on Demand
China Faces Copper Glut as Real Estate Downturn Dampens Demand