Focus on Copper today – 16th April 2024 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the Copper for 16^th April 2024. 

Key Takeaways 

• U.S. retail sales is too scary: U.S. retail sales increased by 0.7% month-on-month in March, exceeding expectations of 0.4% and hitting a new high since September last year. The previous value was significantly revised up from 0.6% to 0.9%. Market expectations for a rate cut by the Federal Reserve have been jeopardised, with traders no longer fully expecting a rate cut before November. 
• Short-term stimulus for copper prices: Last Friday (April 13), the United States and the United Kingdom announced new trading restrictions on Russian aluminum, copper, and nickel. In response, the London Metal Exchange (LME) announced that it would suspend the issuance of warehouse receipts for Russian metal produced after April 13. As of the end of March, Russian metal accounted for 62% of LME copper inventories. However, Russian old metal can continue to be delivered and the short-term impact is limited. 

Technical Analysis 

Weekly Chart Insights 

• Stochastic oscillator:The indicator sends a bullish signal in the overbought area, suggesting that the current upside bias is prominent. Based on the fact that copper prices were about to hit the highest point since January last year, copper prices may face adjustments this week. 
• Moving average indicator: Copper prices have been rising since prior closure above the moving average group. The short-term 33-MA line (red) is still below the long-term moving average group, indicating that the current price may have rose exceedingly, and a correction of the moving average may occur. 

4-hour Chart Analysis 

• Stochastic oscillator: The indicator issued a bullish signal near the 50 midlines, while copper prices stumbled upside, suggesting that the bulls and bears are in the game stage. Worth noting that Stochastic Oscillator is closing in on the overbought threshold, which may lead to bearish momentum in the future.  
• Wolfe wave pattern: Copper prices did not rise strongly after breaking through 4.23. Instead, they formed a Wolf wave structure following a retracement. The current point 5 touches the line connecting points 1 and 3. There is a certain probability of a pullback. The first target is the horizontal level around point 4. 

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 4.3135, 
• Bullish Scenario: Bullish sentiment prevails above 4.3135, first target 4.3910, second target 4.4035; 
• Bearish Outlook: In a bearish scenario below 4.3135, first target 4.2950, second target 4.2765. 

Conclusion 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.