Copper price has endured a choppy day but currently trades 0.08% lower at 3.0795 per pound, as a rash of news helped to cap price upside on the day.
Starting off the day was the news that the proposed strike by miners at Chile’s Collahuasi copper mine had been averted, with the miners’ union agreeing to a new deal with the mine’s joint owners. Reuters reports that the deal, which was reached far ahead of the negotiation deadline, opens the way for the commencement of new contracts on November 1.
This is a significant development as Chile is the world’s largest copper producer, and the mine in question has vast deposits. The Chile miners’ union also has a large membership, and the supply situation in that mine tends to affect Chile’s copper output, which in turn impacts global copper prices.
However, contract talks between miners in smaller mines appear to have collapsed and could lead to an industrial action later in the week. Copper price remains capped at intraday highs of 3.0930 as the markets await a new stimulus deal from US lawmakers.
Copper prices on the XCUUSD daily chart show that the resistance at 3.0920 has held well. Attempts by copper price to beat this price level have failed, as it is also the site of intersection between the lower wedge border that now acts as an ascending resistance trend line, and the resistance line.
Further rejection and decline from this price level could target the 3.0275 price level, with 3.0010 and 2.9795 remaining valid downside targets.
If on the other hand, price does break above the 3.0920 resistance, then copper price can target the 3.1255 resistance, with 3.1865 lining up as a potential upside target for the future. The latter is the price projection point from the neckline of the reverse head and shoulders pattern, and can only be achieved if price advances beyond the present caps.
