Copper price has risen by almost 7% since plunging to a six month low of 8660 in the past week. Despite the rebound, price remains below the crucial resistance level coinciding with the daily Ichimoku cloud. A weakening US dollar has boosted copper prices as slowed growth curbs gains.
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The Ichimoku cloud has recently acted as a resistance, allowing the formation of the right shoulder of a large head-and-shoulders pattern. The following retreat broke the neck line of the above mentioned pattern. The decline was halted by the EMA 200 and prices pulled back to the neckline, reinforced by the daily Ichimoku cloud. If bulls fail to hold above the neckline and integrate the cloud, the downward could resume towards the moving average. if the aforementioned moving average breaks, the target of the SHS is around 9600$. On the other hand, If prices get into the cloud, the next resistance is at 9800$ where the second shoulder of the pattern can be found.
COPPER, D1 interval, Source : xStation5
H4 interval :
On this shorter interval, prices falled after testing back the lower limit of a flag. Copper prices have already erased the initial fall and are now facing the Ichimoku cloud. A break through the cloud at 9500$ would invalidate the bullish outlook. If sellers manage to take control of the market and break under 9300$, the next main support can be found at 9100$
COPPER, H4 interval, Source : xStation5
Réda Aboutika, XTB France
