Copper appreciated by over 7% last week. This follows the reopening of China and its growth-oriented policies. I.e. due to China's demand for copper, the base metal is a natural beneficiary here. From April 2021 to April 2022, copper charted a sideways distribution channel (red rectangle). Afterwards, the base metal moved into a mark-down phase below its 30-week exponential moving average (EMA), with the EMA turned down. The RSI was below 50, denoting a bearish momentum (orange rectangle).
Between June 2022 and November 2022, copper traded sideways in an accumulation pattern (green rectangle). Then, as the CHN 50 started appreciating, copper moved into a mark-up phase - trading above its 30-week EMA, with the EMA turned up. The RSI has pushed to the bullish side of 50 (blue rectangle). As long as it maintains this position, copper's underlying momentum will be biased to the upside.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.