By IFCMarkets
Chinese Industrial production unexpectedly rebounds
The manufacturing PMI (Purchasing Managers’ Index) economic indicator, calculated by the Chinese National Bureau of Statistics (NBS), soared in March to 52 points from its historic low of 35.7 points in February this year. It should be emphasized that 52 points is the highest level since September 2017. Amid the ongoing pandemic of the coronavirus, investors expected a much more modest Chinese manufacturing PMI of 45 points. Now they are more optimistic and predict the same marked increase in industry in neighboring countries – South Korea and Japan. Their official data will be released later. The rapid recovery of industry in Southeast Asia could markedly increase copper demand. It should be noted that World Bank expects a symbolic but still 0.1% increase in Chinese GDP in 2020. China consumes more than half of all copper in the world.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Buy | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 2,25 |
| Stop loss | Below 1,97 |
Market Analysis provided by IFCMarkets
