Fundamental Overview

Copper got stuck in a consolidation just above a key support zone as the market failed to rally on the recent PBoC’s rate cuts. Today, we got the news that China is looking to approve a fresh fiscal package next week worth over 10 trillion yuan and that it’s expected to be bolstered further if Trump wins the US election. Copper spiked into the top of the recent range but couldn’t break through yet. Will we get the breakout?

Copper Technical Analysis – Daily Timeframe

Copper Technical Analysis
Copper Daily

On the daily chart, we can see that copper consolidated around the key 4.32 support zone where we have also the 61.8% Fibonacci retracement level for confluence. This is where the buyers are stepping in to position for a rally into a new high. The sellers, on the other hand, will want to see the price breaking below the 4.32 support to start targeting new lows.

Copper Technical Analysis – 4 hour Timeframe

Copper Technical Analysis
Copper 4 hour

On the 4 hour chart, we can see that we have a strong resistance zone around the 4.43 level where the price got rejected from several times in the past weeks. The buyers will want to see the price breaking higher to increase the bullish bets into new highs, while the sellers will likely keep on leaning on the resistance to position for the break below the 4.32 support zone.

Copper Technical Analysis – 1 hour Timeframe

Copper Technical Analysis
Copper 1 hour

On the 1 hour chart, we can see more clearly the resistance zone with the spike today following the news of China mulling approving a fresh fiscal package next week. There’s not much we can add here as the price action remains confined in the range between the 4.43 resistance and the 4.32 support. A break on either side should lead to a more sustained trend. The red lines define the average daily range for today.

Upcoming Catalysts

Today we have the US Job Openings and the US Consumer Confidence report. Tomorrow, we get the US ADP and the US GDP. On Thursday, we have the US PCE, the US Jobless Claims and the US Employment Cost Index data. Finally, on Friday, we conclude the week with the US NFP and the US ISM Manufacturing PMI.