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February 26, 2023
A quick look at Friday: the Copper future slid down from $4.06 to $3.96 per pound, losing 9.6 cents (2.37%) today.
Copper made an initial break below its 50 day Simple Moving Average at $4.05, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $3.97 currently serving as support. If price action breaks below, the next Fib hurdle is $3.92. On the other hand, note that the Copper future's lower Bollinger Band® is at $3.96, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. The Copper future could begin to recover as it approaches significant support, now 5 cents away from $3.91. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for Copper.
Copper's value drop coincided with the fact that after ending Friday's session at $945.5, Platinum lost $36.1 and is trading around $909.4. After ending Friday's session at $21.44, Silver lost 56.8 cents and is trading around $20.87. Palladium lost 1.73% Friday and closed at $1,430.7.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as United States Pending Home Sales projected to come out at 1% — worse than previous data of 2.5%; data will be released tomorrow at 15:00 UTC.
Some optimism can drawn from the fact that United States Core Durable Goods Orders is projected to outperform its last figure with 0.1%. It previously stood at -0.2%; data will be released tomorrow at 13:30 UTC.
The Copper future hit a significant low of $3.21 around 7 months ago, but has since recovered 26.34%.
