June 2021 - Copper 05/03 - Rebounce Sharply
1. Fundamental Analysis
- After Chile's announcement about rising copper output, Congo increased production of copper and cobalt.
- Besides, US Treasury yield climbed higher, it directly made US Dollar stronger than currency peer. Therefore, this triggered a wave of sell-off from equities to commodities by funds.
- However, news comes from China that they are targeting GDP growth (at over 6%) are quite impressive. In med tern i think Copper is still good.
But near-term, long liquidation remains in place.
2. Technical Analysis.
After forming the first wave down in daily timeframe (or three waves ABC in H1). I think, Copper will rebounce sharply with three waves up as i draw in my pic.
Of course, we ne to watch close when prices likely break the downtrend in H1 timeframe.
- After Chile's announcement about rising copper output, Congo increased production of copper and cobalt.
- Besides, US Treasury yield climbed higher, it directly made US Dollar stronger than currency peer. Therefore, this triggered a wave of sell-off from equities to commodities by funds.
- However, news comes from China that they are targeting GDP growth (at over 6%) are quite impressive. In med tern i think Copper is still good.
But near-term, long liquidation remains in place.
2. Technical Analysis.
After forming the first wave down in daily timeframe (or three waves ABC in H1). I think, Copper will rebounce sharply with three waves up as i draw in my pic.
Of course, we ne to watch close when prices likely break the downtrend in H1 timeframe.
