Copper Hits Multi-Month High Near Major Resistance
Copper's five-hour chart has reached its highest level since mid-September at $6.747, but this surge near major resistance at $6.80 could be short-lived. The uptrend remains intact, with prices above the 200-period simple moving average (SMA) at $6.5863 and trend support signaled by SuperTrend at $6.6067. Momentum is confirmed by a bullish MACD cross, echoing a strong recovery from mid-September lows.
However, the climb's slowing down, with RSI standing at 66.88 - almost overbought - while trading volume is dropping as price tests the $6.74-$6.80 zone. This suggests that sellers may soon act, which is not what bulls want to see near major resistance.
The crucial levels on the radar include immediate resistance at $6.80-$6.89, a V-shaped recovery that's 85% complete with key reversal signals, and a long trade zone at $6.58-$6.61. A short setup is also identified at $6.80-$6.89, which has been recent swing highs and historical resistance.