Copper has slowly broken out but did so consistently after a huge correction in the end of July.
Now rising to some new all-time highs, it would not be surprising to see Copper pursuing higher levels – Particularly as the commodity is very much needed for electrical and industrial processes at all levels.
And this comes particularly important as China’s activity seems to be tilting higher again (and it is highly correlated with Copper prices).
But on the technical aspects, some resistances are arising.
- XCU is evolving within a major Monthly channel since 2022 and is coming across its higher bound as we speak. Today is showing some slight rejection from there.
- The Weekly RSI is showing some form of exhaustion. A bear divergence hasn’t fully formed yet but could be in formation.
- Remaining above the Major Pivot points to higher chances of a breakout, the reverse in bears break below.
In the event of a correction, look at reactions to the $5.40 to $5.50 Support Zone, and at the 50-Week MA ($4.90) in aggressive correction scenarios.
Higher Timeframe Levels to watch for Copper (XCU/USD):
Resistance Levels:
- $6.08 Current All-Time Highs
- Potential Resistance 1 $6.40 to $.650
- Potential Resistance 2 $6.90 to $7.00
Support Levels:
- Imminent Pivot $5.70 to $5.90 – Bullish above, Bearish Below
- Minor Support at March 2025 Highs $5.40
- Major Monthly Support between $4.90 to $5.00 (50-Week MA)
- Monthly channel lows $4.40 to $4.50
- 2025 Support Lows at $4.00
In conclusion, as always, Markets and flows decide whether the trend is over.
The real caution to take is knowing that there are high risks (which can still offer high rewards) in trading extreme trends that traders and investors should to take in consideration
However, in the event that metals still rally, interesting plays could well occur in different, less traded commodities.
For example, other industrial metals such as Uranium, Cobalt, or even Aluminum may come into play.
Platinum and Palladium also have a interesting cases but have already rallied quite largely.
Watch out for positioning and fast-paced moves!
