- Copper picks up bids inside a bullish chart formation.
- Sustained trading above 200-SMA, bullish MACD favor buyers.
- Friday’s low offers immediate support, bulls can aim for $5.00 on a clear breakout.
Copper follows the tune of the commodity basket while printing mild gains, up 0.07% intraday around $4.6740 heading into Monday’s European open.
The red metal’s bounce off $4.5925 portrays a bullish pattern on the four-hour play, namely the inverse head-and-shoulders. However, a clear break above 4.6850 becomes necessary to confirm the run-up towards the $5.0000 psychological magnet.
Although the MACD conditions are favoring the bulls, the monthly high near $4.8880, also the record top, can offer an intermediate halt during a rally past $4.6850.
Meanwhile, pullback moves may swing from the previous day’s low near $4.5925, if not then a 200-SMA level near $4.5035 could test the copper sellers.
In a case where the bearish impulse extends below $4.5035, the monthly low of around $4.4365 becomes the key to watch.
Price of copper: Four-hour chart
Trend: Bullish
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