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COPPER Technical Analysis - COPPER Trading: 2022-09-28
Copper Technical Analysis Summary
Below 3,25
Sell Stop
Above 3,7
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Sell |
| Parabolic SAR | Sell |
| Bollinger Bands | Sell |
Copper Chart Analysis
Copper Technical Analysis
On the daily timeframe, COPPER: D1 went down from the triangle. A number of technical analysis indicators have formed downward signals. We do not rule out a bearish movement if COPPER: D1 falls below the last low and lower Bollinger band: 3.25. This level can be used as an entry point. The initial risk limit is possible above the last 2 upper fractals, the upper Bollinger line and the Parabolic signal: 3.7. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (3.7) without activating the order (3.25), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Copper
The slowdown in the Chinese economy can reduce the demand for non-ferrous metals. Will the COPPER quotes continue to decline?
According to a number of Western analytical agencies, such as the International Copper Study Group, S&P Global and others, China's share in world copper consumption exceeds 50%. At the same time, it occupies only about 9% of the world's copper ore production. Accordingly, China is the main importer of this metal. Meanwhile, China's GDP growth in the 2nd quarter of 2022 was only +0.4% y/y. This is the smallest increase since the early 1980s, if we do not take into account the fall in GDP in the 1st quarter of 2020 by -6.8% y/y due to the coronavirus lockdown. For the entire current year, economic growth in China could be close to a 40-year low in 2020 +2.3%. September 30 will be released China Manufacturing PMI, which can affect the dynamics of copper. China GDP for the 3rd quarter of 2022 will be published on October 18 and Trade Balance will be released on October 14. A significant negative factor for copper could be a possible decrease in demand for electric vehicles in developed countries against the backdrop of an increase in electricity prices. In addition, a lack of liquidity in major Chinese copper trader Maike Metals International Ltd. could have a negative impact.
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