Copper price could be on its way to posting 9-year highs if the bulls continue to push prices close to the 3.900/pound price level.
In a session of thin trade on Tuesday, copper price was lifted by recovery hopes, which has been brought on by positive vaccination data.
Studies from the UK and Israel are already showing that coronavirus vaccinations are reducing hospitalizations and deaths in large numbers. Furthermore, the UK has posted its smallest increase in transmission rates since October, as the government ramps up vaccination efforts.
Analysts at Credit Suisse are reiterating the bullish long-term outlook for copper prices, with the analysts predicting that copper could hit $8,895 per ton. The copper price is presently up by 0.95% on the day.
Technical Levels to Watch
Copper price activity has violated the 3.8340 resistance as a result of today’s upside push, but this has been beaten back by sellers. Price continues to test this resistance and it is at risk of giving way. If this resistance is taken out, the price can aim for the 3.9535 resistance (27 February/2 April 2012 high), with the 6 February 2012 high of 3.9970 also in the picture.
On the flip side, failure to break the 3.8340 resistance could lead to a pullback, which targets the 3.7945 support. If the decline continues below this point, then 3.7345 and 3.6530 could come into the picture as potential downside targets in the near term.
Copper Price; Daily Chart