Morning Market Update – November 10, 2017

Copper price rose above the 3.0718 level by fully reversing losses from start of the week. The pair’s upside movement remains limited, following a repeated upside rejections above the 3.1151 level handle.

The future contract for December delivery is holding within triangular consolidation, as the converging trend lines limit near term price fluctuation.

The pair’s daily studies are bullishly aligned and favor an eventual firm break above the 3.0926 level to signal resumption of recovery from the 3.0570 towards the 3.0718 and psychological 3.120 barriers.

The price may stay in prolonged with the consolidation while holding within the support area.

Its strong bearish signal could be expected on break and close below lower the 3.0718 level.

The bulls would regain control on a decisive move back above the pivot band at the 3.0926 level. However, this is a significant medium term barrier and one would complete a five week base pattern. The pair’s resistance also coincides with the 50EMA and capped the upside move aside from a brief intraday spike at the beginning of day. Yesterday’s candle was encouraging for the bulls with a rise at a high of the 3.0718 level as the momentum indicators. Its stochastic also approaches the key areas where they failed earlier. The four hourly charts show a four day downtrend that has been broken now with the support of holding now increasingly in the near term. The four hourly stochastic rising back above the 50 level would reflect a strong bullish trend. The pair trading below the 3.0718 support level puts 3.0570 back in sight.

Copper price record a new positive level by its repeated stability near the 3.0718 level. We will keep our bullish expectation due to its stability within the bullish channel’s levels besides the stability of the initial support at the 3.0718 level, until it reaches the main targets at 3.0926 and 3.1151 levels.

The pair’s stochastic attempt to rally above the 50 level reinforces our bullish expectation, by providing a new positive momentum which increases the positive pressures on the current trading until reaching the waited targets.

The pair’s expected trading range for today is between the 3.0718 support and 3.1151 resistance levels.

Expected trend for today: Bullish

 
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