Copper snaps back higher after sharp fall last week stalled at a swing area
It wasn’t long ago—back on March 26—that copper surged to a new all-time high of $5.37 (see post here). Since that peak, however, the price has come under heavy pressure, falling by -25% and bottoming at $4.03 on April 6. A modest bounce followed, but a subsequent attempt to retest the lows stalled at $4.06. Notably, those lows held just above the top of a key swing area between $3.92 and $4.02—a region that has consistently attracted buyers since November 2022 and has acted as a floor more recently, particularly since March 2024 (see red numbered circles and most recent lows starting at red number 15). That support helped stabilize the decline and gave buyers room to push back. Since then, copper has rebounded sharply, with the price reaching a high today of $4.62. The recovery has taken the price back above both the falling 100- and 200-hour moving averages (blue and green lines). The 200-hour MA, now at $4.517, was initially broken on Friday. Although copper dipped back below it earlier today, it has since regained that level—offering renewed encouragement to buyers.Looking ahead, holding above the 200-hour MA will be key. Continued strength above that level could give bulls the momentum to push toward further upside targets. The 50% midpoint of the move lower from the March high, is at $4.70. A move above that would open the upside technically for more upside momentum. On the flip side, a move back below the 200-hour MA would shift focus to the 100-hour MA, currently near $4.366, as the next potential support.Buyers are trying to take more control, as volatile market conditions continue in the price of copper. This article was written by Greg Michalowski at www.forexlive.com.
It wasn’t long ago—back on March 26—that copper surged to a new all-time high of $5.37 (see post here). Since that peak, however, the price has come under heavy pressure, falling by -25% and bottoming at $4.03 on April 6. A modest bounce followed, but a subsequent attempt to retest the lows stalled at $4.06. Notably, those lows held just above the top of a key swing area between $3.92 and $4.02—a region that has consistently attracted buyers since November 2022 and has acted as a floor more recently, particularly since March 2024 (see red numbered circles and most recent lows starting at red number 15).
That support helped stabilize the decline and gave buyers room to push back. Since then, copper has rebounded sharply, with the price reaching a high today of $4.62. The recovery has taken the price back above both the falling 100- and 200-hour moving averages (blue and green lines). The 200-hour MA, now at $4.517, was initially broken on Friday. Although copper dipped back below it earlier today, it has since regained that level—offering renewed encouragement to buyers.
Looking ahead, holding above the 200-hour MA will be key. Continued strength above that level could give bulls the momentum to push toward further upside targets. The 50% midpoint of the move lower from the March high, is at $4.70. A move above that would open the upside technically for more upside momentum.
On the flip side, a move back below the 200-hour MA would shift focus to the 100-hour MA, currently near $4.366, as the next potential support.
Buyers are trying to take more control, as volatile market conditions continue in the price of copper. This article was written by Greg Michalowski at www.forexlive.com.
