Copper Smacks Into Resistance At 2.9770
Copper markets are feeling the pinch as the global downturn hits the basic material once again. Overnight the Nikkei 225 fell 3% as investors fled for safety heading for the US 10-year. The US 10-year yield fell below the 3 months for the first time in a while and is usually an indicator for a recession. Last week, US and German manufacturing PMI's also spooked markets sending base metals lower.
Not exactly what you want to hear if you are a precious metals trader or investor. Investment in projects is slowing as the geopolitical environment worsens. With Brexit still hanging around and nothing concrete coming from Xi and Trump.
In terms of the technicals, last week traders tried to push Dr. Copper higher however found strong resistance ahead of the $2.97/lb wave high seen on 1st March. This led to a shooting start candle formation followed by a strong fall in the next daily candle. Today price action has slowed down although the only fundamental catalyst for a decent rally would be Trump confirmation for a trade deal.
Currently, the next support stands at $2.81/lb on the daily chart followed however the stronger $2.77/lb on the weekly....