Copper price rose over 1.5% on Monday as optimism over a potential recovery in China, along with weaker dollar and supply disruptions in Panama provided some fuel for the bulls.
New home sales in China grew for a third straight week in 16 major cities, while industrial demand is also expected to increase as Beijing is set to announce further stimulus measures at its National People’s Congress in March. On the supply side, a series of production and export disruptions by major South and Central American producers compounded concerns about low inventories in the US and Europe, raising concerns regarding potential severe deficit.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appFrom technical point of view, COPPER price pulled back nearly 7.0% from recent high, however buyers seem to halt declines around key support at $8880, which is marked with previous price reactions and 50,0% Fibonacci retracement of the downward wave started in March 2022. As long as price sits above, another upward impulse towards the key resistance zone at $9335 may be launched. This level is marked with an upper limit of the 1:1 structure and 61.8% retracement. Also medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This formed a bullish ‘golden cross’ formation.
COPPER, D1 interval. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
