Copper Price hit the first forecast level. What’s next?

Copper Price hit the first forecast level. What's next?

Copper futures rose more than half a percent yesterday. Prices are again nearing their highest levels in nearly a month, as stronger-than-expected economic data from China eased concerns about weakening growing demand from the world’s biggest consumer.

Both China’s official indices and the Caixin PMI showed growth. in factory activity in March, beating market expectations for mixed results, suggesting the sector could gain some traction from headwinds from Chinese output as demand for base metals strengthens.

Low supply from Chinese copper smelters also supported the Hindus. moved closer to a common production cut as ore supply declines.

MCX Copper Future hit a high of 768.55 and settled at 765.90, or 0.69%.

However, supply from muted mills lifted inventories by 5,000 tonnes to 290.3k tonnes . up more than 800% since the start of the year.

Similarly, the price of Yanghsan copper fell sharply at the end of the month, reflecting lower demand for physical copper from mills.

Technical Outlook – Copper Price

The copper price rose to 768.55 yesterday, which was the highest price in almost a month, and settled at 765.90 with a gain of 0.69%. 28. In March 2024, prices rose and managed to touch our first forecast level of 768.00. Second was at 772.00.

On the above chart, a bullish candlestick formed after a strong break in short-term consolidation prices. Apart from that, RSI 14 and its 9 SMA also gives a bullish crossover. Both point to an imminent top.

However, the copper price should rise above 769.20 to test the next resistance at 772-775.00. Otherwise, the failure of the breakout again creates the probability of profit booking to 762.50-758.50.

Therefore, traders should wait for a pause before another rally.

Commodity Samachar
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