Spokesman for the Chinese health commission has reiterated China's commitment to a Covid-zero policy and vowed that the country will continue to take quick and decisive actions to tackle coronavirus outbreaks. This means that China will continue to embrace the policy of lockdowns and restrictions that are limiting economic activity in the world's second largest economy. Comments from Chinese officials come after speculations mounted that China may abandon its strict Covid policy next year. While we have not seen any major reaction to the statement on the stock markets, industrial commodities and precious metals took a hit and launched new week's trading with bearish price gaps.
Taking a look at the COPPER chart at the H4 interval, we can see that the commodity began a new week below the 8,000 level and continues to trade there after an initial attempt to launch a recovery move failed. A lot will now depend on where the price ends trading today. If the ongoing pullback is just a retest of the 8,000 price zone, another leg higher may follow with a target of 38.2% retracement of the downward move launched in mid-April (8,300 area). On the other hand, should we see a break back below 8,000 zone, bears may aim to test the upper limit of a previously broken trading range at 23.6% retracement (7,800 area).
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appSource: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.