Copper Breakout: Bullish Trend After 0.6Fib RetracementI’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.
Coppertrading
#COPPER 4HThe copper market on the 4-hour chart is showing signs of a bearish trend, with a notable support level breakdown. This indicates weakening buying pressure, leading to a potential sell opportunity.
Key Insights:
1. Support Breakdown: The price has recently breached a critical support level, suggesting a shift in market sentiment from bullish to bearish.
2. Pattern Formation: Prior to the breakdown, a bearish pattern (such as a descending triangle or head and shoulders) was forming, hinting at a reversal or continuation of a downtrend.
3.Volume Confirmation: Increased selling volume at the time of the breakdown reinforces the potential for further downside movement.
4.Target Zones:
- Immediate downside targets lie at previous lows or Fibonacci retracement levels.
- If the selling momentum continues, a deeper decline could be anticipated, potentially testing major support zones.
5.Stop-Loss Considerations: A protective stop-loss above the broken support or the latest swing high is advised to manage risk in case of a reversal.
Trading Strategy:
Entry: Enter sell positions after confirmation of the support breakdown on the 4H chart.
Take Profit: Set take-profit levels at key support levels below the breakdown point.
Stop Loss: Place a stop loss slightly above the previous support (now turned resistance) or the latest swing high.
This technical analysis suggests that if the current conditions hold, selling #COPPER on the 4-hour timeframe could be a strong move for short-term traders.
COPPER: Low risk buy opportunity.Copper is neutral on its 1D technical outlook (RSI = 54.137, MACD = 0.100, ADX = 52.223) and that is the ideal buy opportunity as the price is pulling back to the 1D MA50 and the bottom of the Channel Up. We are aiming for a little over the 0.786 Fib (TP = 5.000), like the Jan 18th 2023 High.
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