Copper futures on a slippery slope; sideways channel holds.
Copper futures with delivery on May 2019 have been moving in a sideways channel over the last month with an upper boundary at 2.9720 resistance level and lower boundary at 2.8700 support. The price is currently easing below the 23.6% Fibonacci retracement level of the up leg from 2.6130 to 2.9720 and the short-term moving averages. The technical indicators in the 4-hour chart are still located in a
In case the price extends the pullback, the next immediate support is expected to come from the lower boundary. Significant penetration of this line would drive prices below the channel, shifting the market structure to a more bearish one. Support could then run towards the 2.8450 level and the 38.2% Fibonacci mark of 2.8350.
Alternatively, in case of an upside reversal, the price could reach the 40- and then the 20-simple moving averages (SMA) currently at 2.9106 and 2.9163 respectively. Above these lines, the market may pare the previous days’ losses and meet the 2.9650 – 2.9720 resistance area. A decisive close above this zone could open the door for more bullish actions.
Briefly, copper prices maintain a neutral bias in the short-term picture, while in the longer timeframe, the market holds within a positive structure since January.
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