GREY:NEVDQ - Post by User
Post by
bogfiton Aug 10, 2021 11:27am
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Post# 33678201
copper near-term direction - "economic conditions of China"
copper near-term direction - "economic conditions of China""Copper has come under pressure as of late while the Chinese economy has shown signs of slowing down in recent months. A test of an ascending trendline from the March 2020 low may be just around the corner around 4.28/29, with a breach of the line yet to materialize. Headwinds remain for the red metal as data from China hints at slowing demand for commodities across the board. While these concerns permeated briefly into global equity markets, commodities have been hit especially hard as lockdowns and restrictions put a halt to Chinese economic activity. July customs data indicated weakening demand for imports of oil, iron, and copper; all of which have moved lower recently. 
Copper prices appear to be limited in the near-term to the boundaries of the triangle pattern that has been in formation since May. Following a test of the upper trendline in July, the price has weakened to test the ascending trendline. This is where support may be found in the 4.28/29 area just below current levels, and that may be an appetizing point for bulls given copper’s inability to break below this key support level. In the event of a near-term bounce, resistance may come in the form of the 50-day moving average around the 4.37 area. Much of copper’s near-term direction may be tied to economic conditions of China, which appear to be deviating from Western countries. While bearish sentiment seems to be prevailing given recent price action, bulls may once again regain control upon a retest of key support just below current levels." Copper Analysis: Inflection Point Incoming, Major Support Test Looms (dailyfx.com) b.