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Copper Prices Continue Recovery Path After Early April Plunge
(MENAFN- The Rio Times) TradingView data released this morning shows copper prices maintaining their recovery momentum after experiencing a dramatic correction earlier this month.
Copper CFDs currently trade at $4.67225, up 0.19% from yesterday's close, continuing the metal's climb from recent lows. The technical chart reveals copper's volatile journey over the past month.
Prices surged throughout March to reach an all-time high near $5.37 by March 26. This peak represented the culmination of a steady uptrend that began in early March when prices hovered around $4.50 per pound.
The rally proved unsustainable as copper experienced a dramatic 25% correction. This sharp reversal sent prices plummeting to around $4.03 by April 6, erasing nearly all gains made since early March.
Technical indicators show the price broke through multiple support levels during this rapid decline. Trading volumes spiked during the sell-off as panic gripped the market.
The velocity of the decline triggered stop-loss orders and forced liquidations across trading platforms. Market participants pointed to profit-taking and concerns about industrial demand as key factors behind the correction.
Copper Price Outlook
However, copper has shown remarkable resilience since hitting its April 6 low. The metal has established a clear recovery pattern, forming a series of higher lows and higher highs. This technical formation suggests improving market sentiment and returning buyer confidence.
Moving averages on the chart now indicate potential support levels forming. The price currently trades above both short and medium-term moving averages, a traditionally bullish signal that suggests momentum may continue to favor the upside.
The Bollinger Bands visible on the chart show decreasing volatility compared to the extreme widening seen during the early April crash. This contraction suggests the market may be finding equilibrium after the period of extreme price action.
Resistance now appears around the $4.68-$4.70 zone, where copper has faced selling pressure in recent days. Traders watch this level closely as a breakout could accelerate the recovery toward the $5.00 psychological barrier.
Support has developed near $4.63, with stronger buying interest evident around $4.50. These technical levels will likely determine copper's short-term trajectory as the market digests recent price swings.
The ongoing recovery reflects changing market dynamics. Industrial users may be taking advantage of lower prices to secure supplies, while speculative positioning appears more balanced after extreme short selling during the decline.
The metal's performance in coming days will establish whether this recovery can challenge previous highs or merely represents a correction within a larger downtrend.
Copper CFDs currently trade at $4.67225, up 0.19% from yesterday's close, continuing the metal's climb from recent lows. The technical chart reveals copper's volatile journey over the past month.
Prices surged throughout March to reach an all-time high near $5.37 by March 26. This peak represented the culmination of a steady uptrend that began in early March when prices hovered around $4.50 per pound.
The rally proved unsustainable as copper experienced a dramatic 25% correction. This sharp reversal sent prices plummeting to around $4.03 by April 6, erasing nearly all gains made since early March.
Technical indicators show the price broke through multiple support levels during this rapid decline. Trading volumes spiked during the sell-off as panic gripped the market.
The velocity of the decline triggered stop-loss orders and forced liquidations across trading platforms. Market participants pointed to profit-taking and concerns about industrial demand as key factors behind the correction.
Copper Price Outlook
However, copper has shown remarkable resilience since hitting its April 6 low. The metal has established a clear recovery pattern, forming a series of higher lows and higher highs. This technical formation suggests improving market sentiment and returning buyer confidence.
Moving averages on the chart now indicate potential support levels forming. The price currently trades above both short and medium-term moving averages, a traditionally bullish signal that suggests momentum may continue to favor the upside.
The Bollinger Bands visible on the chart show decreasing volatility compared to the extreme widening seen during the early April crash. This contraction suggests the market may be finding equilibrium after the period of extreme price action.
Resistance now appears around the $4.68-$4.70 zone, where copper has faced selling pressure in recent days. Traders watch this level closely as a breakout could accelerate the recovery toward the $5.00 psychological barrier.
Support has developed near $4.63, with stronger buying interest evident around $4.50. These technical levels will likely determine copper's short-term trajectory as the market digests recent price swings.
The ongoing recovery reflects changing market dynamics. Industrial users may be taking advantage of lower prices to secure supplies, while speculative positioning appears more balanced after extreme short selling during the decline.
The metal's performance in coming days will establish whether this recovery can challenge previous highs or merely represents a correction within a larger downtrend.
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