Copper price looks set to re-establish the highs set earlier in the year after a strong performance on the day. Copper prices on the XCU/USD pair surged 1.96% this Wednesday on the back of strong economic recovery sentiment that was stoked mostly by positive comments from ECB Chair Christine Lagarde and FOMC Member Robert Kaplan.
Also stoking bullish sentiment on copper was the report from China that indicated that its imports of copper concentrate grossed 2.1 million tonnes; a record monthly purchase. This was according to data released by Chinese customs on Tuesday. Credit Suisse maintains its bullish outlook on copper prices, predicting that the red metal could climb above the $10,000 mark in 2021 (equivalent to $4.622/pound).
The symmetrical triangle on the daily chart of the XCU/USD pair is in evolution, with the active copper price candle surging towards the triangle’s upper boundary. A break to the upside is the expected resolution of this pattern, targeting 4.2015 and 4.2755 along the way, even as copper price aims for a projected price point at 4.3995. Attainment of this point would allow for a high that surpasses the February 2021 top at 4.3755, setting up the chance for a restoration of the uptrend and potential to aim for 4.5260.
On the other hand, a decline below the triangle’s lower border would also need to take out the support at 3.9970, for downside barriers at 3.9535 and 3.8340 to come into the picture. The 3.7945 and 3.7345 support levels may also become relevant to the picture if the decline is extensive.
