Fundamental
Overview
Copper got stuck
in a consolidation just above a key support zone as the market failed to rally
on the recent PBoC’s rate cuts. Today, we got the news
that China is looking to approve a fresh fiscal package next week worth over 10
trillion yuan and that it’s expected to be bolstered further if Trump wins the
US election. Copper spiked into the top of the recent range but couldn’t break
through yet. Will we get the breakout?
Copper
Technical Analysis – Daily Timeframe
Copper Daily
On the daily chart, we can
see that copper consolidated around the key 4.32 support zone where we have also the 61.8% Fibonacci retracement level for confluence. This is where the buyers are stepping
in to position for a rally into a new high. The sellers, on the other hand,
will want to see the price breaking below the 4.32 support to start targeting new
lows.
Copper Technical
Analysis – 4 hour Timeframe
Copper 4 hour
On the 4 hour chart, we can
see that we have a strong resistance zone around the 4.43 level where the price
got rejected from several times in the past weeks. The buyers will want to see
the price breaking higher to increase the bullish bets into new highs, while
the sellers will likely keep on leaning on the resistance to position for the
break below the 4.32 support zone.
Copper Technical
Analysis – 1 hour Timeframe
Copper 1 hour
On the 1 hour chart, we can
see more clearly the resistance zone with the spike today following the news of
China mulling approving a fresh fiscal package next week. There’s not much we
can add here as the price action remains confined in the range between the 4.43
resistance and the 4.32 support. A break on either side should lead to a more
sustained trend. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we have the US Job Openings and the US Consumer Confidence report.
Tomorrow, we get the US ADP and the US GDP. On Thursday, we have the US PCE,
the US Jobless Claims and the US Employment Cost Index data. Finally, on
Friday, we conclude the week with the US NFP and the US ISM Manufacturing PMI.