FundamentalOverview

Last week, the PBoC announced lots of easing measures ranging from short to long term interest rates cuts. Copperrallied strongly as China makes up for more than 50% of copper demand. Thingsare starting to look better for the market as we have also the Fed cuttingrates into a resilient economy.

Central bankeasing generally leads the manufacturing cycle, so we can expect global growthto pick up. All these reasons should be bullish for the market and supportprices in the next months (barring a recession).

CopperTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that copper rallied all the way up to the 4.70 level following the Chineseeasing measures. This is where we can expect the sellers to step in with adefined risk above the level to position for a pullback into the 4.32 level.The buyers, on the other hand, will want to see the price breaking higher toincrease the bullish bets into the cycle high.

Copper TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendlinedefining the current bullish momentum. The price is dipping below the trendlineas the momentum lost a bit of steam, but the sellers will need to break belowthe most recent higher low at 4.58 to gain more conviction for new lows. The buyers,on the other hand, will likely buy the dip around these levels to position fora break above the 4.70 level.

Copper TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee more clearly the loss of momentum although the bullish structure remainsintact. The next big event will be the US ISM Manufacturing PMI tomorrow. Thered lines define the average daily range for today.

UpcomingCatalysts

Today we have Fed Chair Powell speaking. Tomorrow, we get the US ISMManufacturing PMI and the US Job Openings data. On Wednesday, we have the USADP report. On Thursday, we get the latest US Jobless Claims figures and the USISM Services PMI. Finally, on Friday, we conclude the week with the US NFPreport.