Copper Price Forecast: Evergrande Contagion Infects Charts dailyfx.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailyfx.com Daily Mail and Mail on Sunday newspapers.
Copper Price Forecast: Technicals Stabilizing, Fundamentals in Question
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Copper Price Outlook:
Copper prices have almost staged a meaningful recovery in July. Just not quite yet as more technical resistance remains overhead.
The demand side hasn’t recovered since news out of China that the government would release industrial metals stockpiles to cool their respective rallies.
Trading is a function of both price and time; the technical uncertainty can be resolved either through a correction in price action or more sideways chop.
Minor Recovery Thus Far
Ever since late-May, when news has emerged from China that officials would take steps to curb “unreasonable” price appreciation in industrial metals by releasing inventories, copper prices have been under pressure. But with the drop in US Treasury yields alongside US equity markets pushing to fresh record highs (again), risk appetite is on the up-and-up, offering narrative relief for embattled copper prices.
Copper Price Forecast: Bullish Breakout Pacing Towards Yearly High dailyfx.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailyfx.com Daily Mail and Mail on Sunday newspapers.
Copper Price Forecast: Bullish Breakout Pacing Towards Yearly High
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Copper Price Outlook:
The recent symmetrical triangle consolidation yielded a bullish resolution as anticipated in the prior copper price forecast update. Now, copper prices may be set for a return to their yearly high – and then some.
A drop in global bond yields alongside roundly positive economic news has increased the growth appeal of copper prices, while news flow otherwise has been encouraging.
The long-term view (both 1Q 21 and 2Q 21 top opportunities) remains on track, insofar as the multi-year trendline break suggests that a bullish view is appropriate for copper prices.
A spectacular rally in copper has enthralled market participants as prices have been marching ahead almost every month since testing the lows of Rs 335.95 per kg in mid-March 2020. It is not just about copper which has climbed to record highs of around Rs 737 a kg at MCX, and is trading close to a decade’s high at LME, the entire base metal complex is witnessing a euphoric move driven by optimism about swift economic recovery from the pandemic, vaccine rollouts gathering pace and huge liquidity being pumped into the global economy by major central banks and governments across the globe. The resumption of buying by China after Lunar New Year holidays has further acted as a catalyst for this unabated run in the base metal complex.