Slobodan Drvenica
Windsor Brokers
COPPER
Copper surged on Tuesday, extending recovery rally from $3.0250 low for the second day, driven by weaker dollar and traders covering short position ahead of Chinese New Year holiday.Fresh bullish acceleration took out two Fibo barriers at $3.1022 and $3.1260 (Fibo 38.2% and 50% of $3.2270/$3.0250 fall respectively), penetrated daily cloud (cloud base lies at $3.1312).Extension into daily cloud cracked next pivot at $3.1377 (Fibo 38.2% of entire $3.3200/$3.0250 pullback and daily Tenkan-sen ($3.1405).
Today’s strong rally which so far marks the biggest daily gains since 24 Jan, has generated several bullish signals which suggest further advance, as daily techs are improving.Bulls pressure next significant barrier at $3.1498 (Fibo 61.8% of $3.2270/$3.0250) close above which will be bullish signal for extension through daily Kijun-sen ($3.1575) towards next key barrier at $3.1985 (daily cloud top).
North-heading daily RSI and slow stochastic show plenty of space to accommodate further bullish extension.Broken cloud base should ideally contain and keep the downside protected.
Res: 3.1498; 3.1575; 3.1793; 3.1985
Sup: 3.1405; 3.1312; 3.1270; 3.1022
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.