Comex Copper at Key resistance- Will It Break?

Comex Copper trading in a range as focus remained on more upcoming economic data from the U.S. and China.  Adding to this, the US dollar retreated from the day’s high as markets considered that the recent inflation numbers are not sufficient in convincing the Federal Reserve to hike rates next week.

Red metal saw some consolidation in the last two days, as data showed that U.S. consumer inflation grew slightly more than expected in August

Now, today European Central Bank meeting scheduled later today will weigh on the prices. Further, U.S. retail sales, Chinese industrial production set to release tomorrow which will give further direction.

U.S. producer inflation will be released later today, which will give more cues on price pressures in the country after data released on Wednesday showed consumer inflation grew more than expected in August

Further, China, industrial production and retail sales readings are due on Friday, and are expected to weigh sentiments. While some economic readings- particularly trade and inflation- showed marginal improvements in the Chinese economy through August, overall sentiment towards the country remained largely negative, as it struggles with a slowing economic recovery

However, worries about industrial metals demand in China has been a feature for some months despite a series of supporting measures by Beijing to revive a troubled property market.

Technical Outlook

Since 11 September 2023, Comex Copper Future has traded at $3.8095 a pound, up 0.44%. Prices rebound from a more than three-week low of $3.7770 a pound

On the above chart, copper prices forming a bullish flag pattern, which is indicating a strong upside move in near future. A break above $3.8105 a pound will push prices towards $3.8365 – $3.8565 a pound very soon or can say copper prices may witness a 3%-4% significant jump.

Alternatively, on the downside crucial support is seen at $3.7720 a pound and a break below only direction will convert into the negative zone (that would be in rare cast). And prices could retreat towards $3.7485-$3.7380 a pound.