Copper futures has been an interesting market in recent weeks; and heading into November begins, this metal is not far from its recent multi-year high.
We will use the hourly chart below to take a look at a technical view of this market that should be relevant for much of this week.
Price has been rising since the end of last week. To the upside, our first target level is marked by the red trendline, just below 3.20. Bears need another lower low at this trendline. Otherwise, if the market does not find resistance there, then we will be targeting the mid-October high at 3.2595, marked by the upper blue line on the chart.
To the downside, the orange line near the center of the chart at 3.145 has been a pivot for the second half of this month. We believe this market will find minor support here; however, a break of this level would open the door for a test of the lower green trendline at 3.10. Should that trendline not hold, we would look for a test of last week’s 3.0720 low.
Traders should be aware that today is the second day of the two-day FOMC meeting, which will conclude today at 2:00 p.m. EST with an announcement regarding monetary policy, followed by a press conference at 2:30.
These events move the U.S., dollar, which could have an impact on the copper market. As always, copper traders should be aware not only of U.S. economic events but also the global economic calendar, since Chinese demand plays a huge role in copper’s value.