Copper price has retreated from its 8-year peak, as simmering US-China tensions over new sanctions on Chinese officials prompted some profit-taking in Tuesday’s trading session.
Copper price had surged to 8-year highs on Friday after Goldman Sachs raised its price target on copper prices to $10,000 per tonne ($4.536 per pound), predicting that the bull run on copper could last until 2022.
Copper has made an astounding bullish run in 2020 after slumping to multi-year lows in March, following the coronavirus outbreak. Recovering demand from China is behind the recovery of copper prices. However, the US’s new round of sanctions to target Chinese officials allegedly behind the Hong Kong national security law crackdowns has jolted the markets.
Technical Levels to Watch
Yesterday’s hanging man candle provided the basis for the stall in the uptrend, which has allowed for Tuesday’s profit-taking action. The daily candle has violated the 3.4895 former resistance-turned-support, and a clear breakdown of this level is required to open the door for a retreat to 3.4195 (22 May 2013 high). 3.3925 and 3.3220 are additional targets to the south.
On the other hand, a bounce from present levels could allow copper price to push ahead of last week’s highs and target the 3.5755 resistance formed by a previous high last seen on 11 March 2013. The 22 November 2010 low at 3.6570 forms an additional target to the north.
Copper Price; Daily Chart
