Concerns over the condition of the global economy have put a strain on industrial metals prices. Copper took a hit and dropped to the 16-month low at the end of the previous week. However, taking a look at the chart and analyzing a daily candlestick from Friday, we can see that the daily drop was almost fully recovered and a long lower wick was painted. Given that it was painted near an important support - 38.2% retracement of the post-pandemic recovery move in the 8 400 area - technical setup supports a launch of the recovery move and potential resumption of the uptrend. The nearest resistance zone to watch can be found ranging below 9 100 mark. However, traders should keep in mind that copper price is reactive to changing economic outlook, especially in China, therefore news of potential new lockdowns could quickly lead to declines resuming.
Source: xStation5
