Copper Poised for Bullish Breakout?

Copper’s daily chart paints a picture of a potential bullish breakout. Prices have been forming higher highs, currently testing the previous swing highs around $768.75. A decisive break above this crucial resistance level is vital for the uptrend to resume.

Technical Analysis Supports Bullish Outlook:

Moving Averages: Copper comfortably sits above the short-term moving average (752), indicating a positive short-term trend. Additionally, the 760 level acts as immediate support.
RSI: The Relative Strength Index (RSI) recently experienced a positive crossover in the oversold zone, suggesting momentum is shifting towards the upside.
Price Action Strength: Notably, prices haven’t breached the previous day’s low for the past three sessions, further bolstering the bullish case.

Trading Strategy:

Based on the current technical landscape, a buy on dips strategy could be appropriate for the day. This strategy involves buying Copper when prices experience temporary pullbacks, targeting resistance levels of $768/$770.

Considerations for Informed Trading:

Market Volatility: Unexpected economic news or geopolitical events could trigger market volatility, impacting Copper’s price movement.
Supply and Demand: Global supply chain disruptions or changes in demand from key sectors like construction and electronics can affect Copper prices.
Confirmation of Breakout: A decisive breakout above the $768.75 resistance level would solidify the bullish trend. Conversely, a sustained drop below $760 could signal a potential trend reversal.

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.

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