Copper Forecast Today 05/7: Ready To Launch? (Chart)
(MENAFN- Daily Forex)
In my daily Copper analysis, I recognize that this asset could be on the verge of breaking out to the upside. This is very important to pay attention to, due to the fact that the copper market is a good gauge of what the Economy is doing. By paying attention to copper, you recognize what is going on with construction and at this point in time, the artificial intelligence world as so much copper is needed to propel that science forward.
There's also a lot to be said about the copper market and its predictive qualities for Asian markets, as it is used in so much construction in places like China and Indonesia, which of course are the hotbeds of global growth that a lot of people put money into. Because of this, the market is one that a lot of people will pay attention to in order to assess what the Australian dollar is going, Australian stocks, as well as other hard assets that are in such high demand in places like mainland China.
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Technical Analysis
The market recently pulled back to the 50% Fibonacci retracement level, but over the last couple of days has rallied a bit in order to break back above the 50-Day EMA. By doing so, the market looks as if it is ready to continue to go higher, and if we can break above the crucial $10,000 level in the spot market, I think you have a real shot at copper taking off in trying to get back to the previous highs, near the $11,150 level. Whether or not we can break above there remains to be seen, but that is a big enough mood that I think most people would be happy with taking advantage of it.
Keep in mind the Friday as the jobs number in the United States and that can have a major influence on risk appetite, at least in the short term. Pullbacks at this point should see the $9500 level has potential support, as it had been previously. If we break down below there, then we could go looking to the 61.8% Fibonacci retracement level, which is backed up by the crucial 200-Day EMA. All of that being said, I am more bullish than bearish at this point, and I do think copper could be a great trade if you are paying attention to it.
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