Copper price rebounded slightly after hitting a four-month low as Chinese leaders pledged at a Politburo meeting to step up support measures and stabilize market sentiment to meet their full-year growth target.
Weak business activity data in China also raised the chance of more stimulus from the authorities.
Data showed the country’s manufacturing activity contracted at a slightly faster pace in July, while growth in the services sector slowed to an eight-month low.
Still, global economic uncertainties and trade tensions continued to weigh on the demand outlook for industrial metals.
Additionally, reports that some Chinese smelters are pursuing new projects to comply with output mandates challenged earlier reports of a joint production cut to lift treatment charges.
The Federal Reserve’s (Fed) latest rate call held rates steady for the July meeting as markets broadly expected, with Fed Chairman Jerome Powell highlighting what needs to happen in US data before the US central bank will begin delivering rate cuts, which also weighted on the sentiment.
Technical Outlook : Copper Price
Copper prices rebounded and were able to gain 1.69% yesterday. Prices made a high 810.35 and settled at 807.40 compared to the previous day’s close of 794.
On the above chart, formation of a hammer candlestick is indicating bullishness in the near future. Further, RSI 14 and its 9 SMA is giving a bullish crossover which also supports the momentum.
On the upside, immediate resistance is seen at 813.50 a break above is expect to extend recovery rally towards 818-822.00
Else, any short time dip towards 802-805 is likely to attract buying activities. On the downside, support is seen at 795-780.00
Happy Trading!
Commodity Samachar
Learn and Trade with Ease
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