Copper price rose over 1.5% on Monday as optimism over a potential recovery in China, along with weaker dollar and supply disruptions in Panama provided some fuel for the bulls.
New home sales in China grew for a third straight week in 16 major cities, while industrial demand is also expected to increase as Beijing is set to announce further stimulus measures at its National People’s Congress in March. On the supply side, a series of production and export disruptions by major South and Central American producers compounded concerns about low inventories in the US and Europe, raising concerns regarding potential severe deficit.
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Create account Try a demo Download mobile app Download mobile appFrom technical point of view, COPPER price pulled back nearly 7.0% from recent high, however buyers seem to halt declines around key support at $8880, which is marked with previous price reactions and 50,0% Fibonacci retracement of the downward wave started in March 2022. As long as price sits above, another upward impulse towards the key resistance zone at $9335 may be launched. This level is marked with an upper limit of the 1:1 structure and 61.8% retracement. Also medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This formed a bullish ‘golden cross’ formation.
COPPER, D1 interval. Source: xStation5
