Copper rose to 11-month high, hit predicted level – what’s next?

Copper rose to 11-month high, hit predicted level - what's next?

Copper prices rose to an 11-month high on Monday as supply concerns from China’s output cuts outweighed consumer consensus industrial production data and a weaker dollar spurred buying .

A rare agreement by China’s copper smelters to cut output last week is fuelling a rally that has propelled copper prices to 11-month highs of 768.75 yesterday.

But that rally cooled slightly on Monday after mixed economic data from China. Industrial production rose more than expected in January-February, but retail sales fell short of expectations, while unemployment rose to a five-month high.

The mixed data raised concerns that weak economic growth in the world’s largest copper importer could dampen its appetite for the red metal.

China’s industrial output rose 7% in January and February, the fastest pace in almost two years and well above expectations for a 5% increase.

However, a protracted crisis in China’s property sector, a key pillar of the economy, remains a major concern and Monday’s data offered little relief on that front with declines in property investment narrowing in January-February.

Technical Outlook – Copper

The price of copper continued its upward trend since February 12, 2024. Prices recently rose to 768.75, which was the highest of the year. Yesterday it fell to 765.60, up 0.44%.

In the March 15, 2024 outlook, prices touched both forecast levels of 760-765.00 after breaking the 755.50 resistance. On the chart above, prices are trading near major resistance at 771.20. A break above prices looks to test the next resistance at 778.50-782.00.

However, due to the policy of a major central bank, prices can easily be exceeded.

Therefore, traders should expect a decline to 752.50-753.50 to attract buying activity in the near term. Immediately stopped below 744.50.

 On the downside, with 732.50 below that, prices could pull back to 725.50-718.00.

Commodity Samachar
Learn and Trade with Ease

Also Read: Forex News Letter : Gold and Silver in the Spotlight Again?, Breaking Down 5 Technical Analysis Myths: Let’s Get the Facts Straight!

Recommended Read: The Commodity Market — Why is it advantageous to traders?