Overview
Last Friday, the PBoC announced new measures to stimulate the economy, including rate cuts and stock buyback funding. Positive economic data, notably in Retail Sales and Industrial Production, also supported copper prices, helping them recover most of last week’s losses.
Copper Technical Analysis – Daily
Copper found support around the 4.32 level, coinciding with the 61.8% Fibonacci retracement. Following the PBoC announcement, buyers increased their positions. Sellers, however, are looking to push below 4.32 to target the trendline near 4.20.
Copper Technical Analysis – 4 Hour
On the 4-hour chart, copper broke above its downward trendline, boosting bullish momentum. The first target is the swing level at 4.51, followed by 4.70 resistance. Sellers may enter around 4.51 to target a drop back to support at 4.32.
Copper Technical Analysis – 1 Hour
The 1-hour chart shows a minor upward trendline indicating ongoing bullish momentum. Buyers will likely continue to push for higher prices, while sellers are eyeing a break lower towards the 4.32 support level. The red lines indicate the average daily range for today.
Upcoming Catalysts
This week appears light on major economic releases, with significant data expected later in the week. On Thursday, we’ll see the Flash PMIs for Japan and the US, along with US Jobless Claims figures.
