Media reports surfaced this morning saying that China may allow banks to offer unsecured short-terms loans to developers. This would be the first such case in China in history and would only apply to qualified developers. Still, it would be a significant support for country's builders. Announcement triggered a jump in industrial metals, like copper. Better-than-expected manufacturing PMI readings from Europe, especially Germany, provided a boost for base metals as well.
Taking a look at COPPER chart at D1 interval, we can see that price has recently broken above the upper limit of a bearish channel. Gains were later halted at the 8,450 resistance zone, marked with 200-session moving average (purple line), but price remains nearby and another attempt at breaking above cannot be ruled out. Should we such a break, the next resistance zone to watch can be found ranging above 8,800 mark. Target determined by a textbook range of the upside breakout from the bearish channel can be found slightly above it, at 8,900.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appSource: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.