Copper Breakout: Bullish Trend After 0.6Fib Retracement
Updated
I’ve initiated a long position in Copper after a successful retracement to the 0.6 Fibonacci level, which triggered my entry. The bullish trend looks solid, and I am targeting the 0.7 Fibonacci level for my take-profit (TP), aligning perfectly with my point of interest around the 4.800 level. As of now, Copper is facing resistance in the 4.300–4.400 price zone, but a breakout here will prompt me to adjust the stop-loss (SL) and take partial profits. Until the breakout occurs, the trade criteria remain as shown in the chart.
Technical Analysis:
• Entry: Near the 0.6 Fibonacci retracement level.
• Target (TP): 4.800 (aligned with the 0.7 Fibonacci level).
• Stop-Loss (SL): To be adjusted after a clean breakout above 4.400.
• Market Structure: The price has respected the Fibonacci retracement levels and is set for a potential breakout to the upside. The bullish trend remains intact, supported by clean retracement patterns.
Fundamental Outlook:
Copper prices have been fluctuating due to external factors, including China’s economic measures, which have helped support the market. However, half of those gains have retraced as market participants begin to question the scale of the stimulus. Despite this, the long-term view for Copper remains bullish, especially with solid demand linked to the energy transition and rising input costs.
Additionally, factors like U.S. rate cuts and China’s fiscal policies will play a key role in driving future demand. The current short-term outlook remains dependent on stimulus from China, as well as the timing and impact of U.S. rate cuts. Should demand recover, Copper could potentially rally towards the 4.800 level as targeted.
Risk Management:
• The SL will remain flexible, adjusted accordingly based on the price action and breakout strength.
• Partial profits will be taken in the 4.400 range, with the remainder held for the final target at 4.800.
• The position is managed carefully to avoid exposure to market volatility in the lower ranges.
Always remember to Pay Yourself by taking partial profits when the trade moves in your favor!
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Technical Analysis:
• Entry: Near the 0.6 Fibonacci retracement level.
• Target (TP): 4.800 (aligned with the 0.7 Fibonacci level).
• Stop-Loss (SL): To be adjusted after a clean breakout above 4.400.
• Market Structure: The price has respected the Fibonacci retracement levels and is set for a potential breakout to the upside. The bullish trend remains intact, supported by clean retracement patterns.
Fundamental Outlook:
Copper prices have been fluctuating due to external factors, including China’s economic measures, which have helped support the market. However, half of those gains have retraced as market participants begin to question the scale of the stimulus. Despite this, the long-term view for Copper remains bullish, especially with solid demand linked to the energy transition and rising input costs.
Additionally, factors like U.S. rate cuts and China’s fiscal policies will play a key role in driving future demand. The current short-term outlook remains dependent on stimulus from China, as well as the timing and impact of U.S. rate cuts. Should demand recover, Copper could potentially rally towards the 4.800 level as targeted.
Risk Management:
• The SL will remain flexible, adjusted accordingly based on the price action and breakout strength.
• Partial profits will be taken in the 4.400 range, with the remainder held for the final target at 4.800.
• The position is managed carefully to avoid exposure to market volatility in the lower ranges.
Always remember to Pay Yourself by taking partial profits when the trade moves in your favor!
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Trade active
Currently, the copper trade has returned to the entry price, without breaking in either direction. For the moment, copper is moving in a defined range between 4.2737 and 4.4300 for the past eight days. This indicates indecision in the market, where the price is being tested on both sides but lacks the momentum to break out.
The key levels to watch are the upper boundary near 4.4300 and the lower support at 4.2737. Until we see a clear break beyond these levels, the market will likely continue ranging. Manage your risk carefully and keep an eye out for further developments as the market builds up potential energy for a move.
Trade active
Copper is showing promising signs of breaking out from the accumulation phase to the upside. Volume is supportive, suggesting that this could be a decisive move. However, by the end of the day, we should have clearer insight as to whether this breakout is a true trend continuation or merely a liquidity grab. For today, key levels to monitor are between 4.400 and 4.500; it’s essential that copper holds above these levels without falling back into the prior range to confirm sustained upward momentum.Trade active
The trade remains active, though price action has been challenging with 17 days of range-bound movement and no clear direction. I’ll reassess at the end of tomorrow to decide whether to close the position or let it run, factoring in swap fees and current market conditions.Trade active
Copper is still ranging within the same levels, showing erratic price action. It has mitigated the upside liquidity three times, suggesting a potential visit to the 4.2500-4.2000 price zone before a possible upward move. I’ll keep this position active for now; however, if price drops to these levels without a strong reaction, I’ll consider closing the trade.Trade active
At last, some action! Copper has broken higher with volume in the trade’s favor, showing no significant rejection so far. It’s great to see movement after 20 days of range-bound action. This is exactly the kind of trade you want to be positioned in early to catch the quick moves. For those in with the same entry, you’re up around 3.5% in profit—consider locking in those gains or letting it run. Tomorrow is an important day, and outcomes are unpredictable, so stay vigilant. Remember, pay yourself when in profit!Note
Copper is testing our patience, but it successfully tapped into the 4.2000 liquidity zone and responded with strong buying volume, pushing the price back up. I’ll be managing this trade closely and considering selling a portion of the position to manage swap fees. It hasn’t been an easy trade to hold, but we’re still in the game. Remember to pay yourself!
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