Technical Update - Copper seems to form bottom and reversal signal| FXMAG.COM

If Copper price doesn’t collapse towards the end of the session i.e. not ending on a positive note, the base metal could be forming a bottom and reversal pattern in the form of a Morning star/Hammer like candlestick formation. The Morning star pattern is not textbook perfect as there should be a body gap between the falling red candle Tuesday and the Doji/Hammer candle Wednesday.
RSI breaking above falling trend line supports the likely rebound scenario

A rebound is likely to take Copper back to around 375-385. If moving above 385 the rebound could go as far as to 400
This rebound scenario is demolished if Copper takes out the low of the Hammer candle at 327.70 and Copper will resume its downtrend

Source: Saxo Group

Source: Technical Update - Copper seems to form bottom and reversal signal | Saxo Group (home.saxo)

Advertising

Kim Cramer Larsson

Kim Cramer Larsson started his career in 1996 as an equities trader focusing on the US and Asian markets with BG Bank, London. In 1997, Kim relocated to BG Bank, Copenhagen (BG Bank was acquired by Danske Bank in 2000) to the position of equities trader and portfolio manager.

Kim began using technical analysis as a trading tool from 1997. In 2005, Kim was promoted to the position of technical analyst in the FX & Fixed Income Research department at Danske Bank. In his current role, Larsson focuses on technical analysis of equities, equity indexes, forex pairs, and more for Saxo Bank. Larsson’s views and analyses can be found on Saxo’s News & Research hub as well as at Saxo’s Academy where he hosts webinars focusing on chart analysis.

Technical Update - Copper seems to form bottom and reversal signal

Kim Cramer Larsson

Topics

Most recent

Recomended