Copper Double Bottom Bullish Breakout

Copper’s daily chart suggests a possible turning point. After a period of decline marked by a lower highs lower lows formation, the price action has taken a potentially bullish turn. This shift is characterized by the formation of a “double bottom” chart pattern alongside support at the 834 level (coincidentally near the lower Bollinger Band).

Technical Indicators Point Towards Bullish Bias:

Double Bottom: This pattern, where the price dips twice to a similar level and then rebounds, is often interpreted as a sign of a potential trend reversal from bearish to bullish.
Support at 834: This level acted as a vital support zone, preventing further price declines. A decisive break below this level could indicate the “double bottom” failing and the downtrend resuming.
Bollinger Bands: The price-finding support near the lower Bollinger Band suggests a potential buying opportunity, as the price might be nearing an oversold condition.
Price Indicator on the Verge of Crossover: While the text doesn’t specify the indicator, a positive crossover on indicators like RSI or MACD could further bolster the bullish case.

Trading Strategy:

Based on the current technical analysis, a cautious bullish outlook might be warranted. However, wait for confirmation before taking any action.

Confirmation of Breakout: A decisive break above the 845 resistance level is crucial for confirming a bullish trend reversal. This breakout could trigger a surge in price, potentially reaching 852 and even 857 in the near term.
Wait for Indicator Confirmation: If a price indicator like RSI is currently hovering near oversold territory and on the verge of a positive crossover, it would add further confidence to the bullish case.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Conduct your own research and due diligence before making any trading decisions.