- Copper drops for the first time in five days.
- 50-DMA, monthly resistance line constitute a tough nut to crack for the bulls.
- Lows marked during July, June can entertain bears while buyers have a bumpy road to return.
Copper prices on Comex print 0.84% intraday losses while staying pressured near the day’s low of $4.2265 ahead of Thursday’s European session.
The red metal stepped back from 200-DMA the previous day. The bearish impulse gains support from a downward sloping trend line from July 27 to snap a four-day uptrend.
It’s worth noting that downbeat MACD signals also challenge the commodity buyers, suggesting further weakness in copper prices.
In doing so, July’s bottom surrounding $4.1665 and June’s low of $4.0880 gain the bears’ attention.
However, the metal’s weakness past $4.0880 will be challenged by the $4.0000 threshold and monthly low of $3.9615.
On the contrary, a daily closing beyond $4.3055 will aim for the mid-month peak close to $4.4310. Though, tops marked during July and June, respectively around $4.6275 and $4.7070, will challenge the copper bulls afterward.
In a case where the industrial metal jumps past $4.7070, the yearly top marked in May around $4.0880 will be in focus.
Price of copper: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.