In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the COPPER for 21st June 2024.
Key Takeaways
- Copper price retreat: Tightening demand has sparked bullish sentiment on copper, with New York copper contract hitting record high. Similar can be seen on copper prices in London and Shanghai albeit short-lived as investors took profit upon concerns over near-term demand outlook.
- Short squeeze: New York Mercantile Exchange copper contract for July delivery is 7.4 cents higher than September’s contract. The reappearance of spot premium places pressure on short-sell holders while long investors bet heavily on rising copper prices.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator formed bullish signal yesterday after oscillating near the oversold area. At the same time, indicator also formed a divergence signal which suggests short-term bullish bias.
- Support and resistance: Copper prices rebounds from lower level following strong bullish support near 50% of fibonacci retracement level. If copper price closes successfully above 33-MA line (red), it is expected to advance further upwards thereafter.
1-hour Chart Insights
- Stochastic Oscillator: The indicator formed bearish signal near the overbought region, pressuring copper price to pullback further. Nonetheless, due to possible strong bullish support from the downside, it is suggested to wait for a clear signal from the indicator to look for bullish opportunities.
- MA support: Previous closure above 200-MA line (green), suggests further upside in the mid-term. Thus, a close above key resistance level of 4.5440 would further cement such hypothesis.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 4.5030,
- Bullish Scenario: Bullish sentiment prevails above 4.5030, first target 4.5745, second target 4.5875;
- Bearish Outlook: In a bearish scenario below 4.5030, first target 4.4835, second target 4.4645.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
