Copper Technical Analysis – The bulls are eyeing this resistance

<p>The copper market remains
in a tight spot amid uncertainties about global growth, tensions in the Middle
East and improving <a href="https://www.forexlive.com/news/china-sep-industrial-production-45-yy-exp-43-retail-sales-55-yy-exp-49-20231018/">activity data</a> from China. This is leading to a
rangebound price action within a descending triangle until something big
happens triggering a breakout. Given the resilient US economic data and
improving Chinese figures we might see a rebound in prices in the short term,
but watch out for recessionary signs as tight monetary conditions and higher
energy prices might weigh even more on the global economy going forward. </p><p>Copper Technical Analysis –
Daily Timeframe</p><p>On the daily chart, we can see that Copper
yesterday broke through the key <a href="https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/">support</a> zone
around the 3.55 level but bounced back soon after leaving behind a fakeout. The
buyers stepped in more aggressively and took the price into the red 21 <a href="https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/">moving average</a>. From a
risk management perspective, the sellers will be better off waiting for the
price to come back into the downward <a href="https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/">trendline</a> around
the 3.75 level where they will have a much better risk to reward setup. </p><p>Copper Technical Analysis –
4 hour Timeframe</p><p>On the 4 hour chart, we can see that the break
through the support <a href="https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/">diverged</a> with the
<a href="https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/">MACD</a>, which
is generally a sign of weakening momentum often followed by pullbacks or
reversals. In this case, we might see a reversal back into the previous swing
high around the 3.68 level where we can find the <a href="https://www.forexlive.com/Education/technical-analysis-confluence-20220318/">confluence</a> with the
minor downward trendline and the 61.8% <a href="https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/">Fibonacci retracement</a>
level. </p><p>Copper Technical Analysis –
1 hour Timeframe</p><p>On the 1 hour chart, we can see more
closely the fakeout below the support zone and the strong rally afterwards.
From a risk management perspective, the buyers would be better off waiting for
the price to pull back into the 38.2% Fibonacci retracement level before piling
in for another rally into the 3.68 resistance. </p><p>Upcoming Events</p><p><a href="https://www.forexlive.com/EconomicCalendar">Tomorrow</a> we will get the latest US Jobless Claims
report and the market will want to see if the miss in Continuing Claims last
week was just a blip or the start of a trend. Later in the day we will also
hear from Fed Chair Powell where the market will be focused on any hint about
the near-term policy outlook. Copper is likely to get under pressure if the Jobless
Claims data misses expectations by a big margin or Fed Chair Powell sounds very
hawkish. </p>

This article was written by FL Contributors at www.forexlive.com.