Commodities

Technical Analysis – Copper futures records new low; bias still bearish

Posted on May 31, 2019 at 12:05 pm GMT

Melina Deltas, XM Investment Research Desk

Copper futures with delivery on July 2019 are declining with strong momentum over the last three days below the 20- and 40-simple moving averages (SMAs) in the daily timeframe and recording a four-month low of 2.6260 today. The technical indicators are remaining in the bearish territory, with the RSI sloping down in the oversold zone and the MACD posting a bearish cross with its trigger line.

In case the price extends the bearish move, immediate support is expected to come from the 2.5750 barrier, while a significant penetration of this line could meet an obstacle near 2.5380.

On the other side, if there is an upside reversal, the price could reach the 20-SMA currently at 2.7186 and the 2.7475 resistance area. Above these lines, the market may next meet the 40-SMA around 2.8083 and the 2.8295 barrier.

Briefly, copper prices maintain a bearish short-term bias after the bounce off 2.9916 with technical indicators approving the current negative movement.

commodities copper

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