05 Aug

Copper technical setup bearish despite positive data

August 5, 2020

By IFCMarkets.com

Copper technical setup bearish despite positive data

While technical setup is bearish for copper, recent data from China and US painted a picture of recovery in economic activities in both countries. Thus, both manufacturing and services sectors continued expanding in China in July according to Caixin PMI reports (though services expansion slowed). And in US the manufacturing sector grew in July as evidenced by the Institute for Supply Management Purchasing Managers’ Index, and US factory orders rose 6.2% over month in June to mark the second increase in a row. The rebounding of economic activity after coronavirus shutdowns is an upside risk for copper price.

IndicatorVALUESignal
RSINeutral
MACDSell
Donchian ChannelSell
MA(200)Buy
FractalsSell
Parabolic SARSell

 

Summary of technical analysis

OrderSell
Buy stopBelow 2.839
Stop lossAbove 2.9551

Market Analysis provided by IFCMarkets.com


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