Ultima Markets[Market Analysis] The supply of copper ore has sharply decreased,2024The Spring of Copper...

todayUltimaMarkets Bringing you 2023 year 12month 21Japanese copperIn depth analysis.

Fundamental points

•        Reduced copper supplyAgainst the backdrop of political and social opposition, the supply of copper mines is becoming increasingly scarce. Canada's First Quantum Mining Limited has been ordered to close by the Panamanian government, and Anglo American Resources Group has also announced plans to reduce production of its flagship copper business in South America. If the copper mine shutdown lasts for too long, or if2024Eliminate global copper surplus by the year.
•        weaker dollar The recent weakness of the US dollar has also contributed to commodities priced in US dollars. Because for buyers of other currencies, these goods become cheaper, which will increase the demand for commodities in exporting countries.
  

technical analysis

Daily chart analysis

Copper daily chart, sourceUltima Markets MT4）

•        Random oscillation indexThe copper price rose above the previous high yesterday, and the final market price still closed below the previous high level. However, the indicators did not rise rapidly together, forming a divergence structure, indicating that the market still needs to be adjusted for a period of time.
•        Joint resistance zoneThe currently hindered areas for copper prices are11month13The upward trend in recent days61.8%Fibonacci expansion is also in the top high price range. Therefore, the resistance is strong, and copper prices are still under pressure and adjusting in the short term.
  

1Hour chart analysis

Copper1Hour chart, sourceUltima Markets MT4）

•        Top shapeThe copper price has formed a head and shoulder shaped top structure, and during the formation process, the random oscillation index has also been continuously declining, indicating that the market will continue to decline in the short term.
•        Random oscillation indexThe indicator is currently in an oversold area. After waiting for the indicator to leave the area and issue a bearish signal again, you can focus on short-term short selling opportunities.
•        Falling target levelBased on the daily cycle, there is currently no sign of a reversal in copper prices, so the short-term target position for a decline is towards green200Periodic moving average. If the exchange rate further falls below3.800In the front low area, the overall upward trend will be disrupted, and copper prices will face a deep downward adjustment trend.
  

Hub Line Indicators

Copper1Hour chart, sourceUltima Markets MT4）

•        according toUltima Markets MT4InpivotIndicator, daily central price level3.8562，
•        3.8562Upward bullish, first goal3.8733Second objective3.9200
•        3.8562Under bearish, first target3.8090Second objective3.7914
  

Disclaimers

The comments, news, research, analysis, pricing, and other information contained in this article can only be considered as general market information and are provided solely to assist readers in understanding the market situation and do not constitute investment advice.Ultima MarketsReasonable measures have been taken to ensure the accuracy of the data, but the accuracy of the data cannot be guaranteed and can be changed at any time without notice.UltimaMarketsWe will not be responsible for any losses or losses (including but not limited to any loss of profits) that may arise from the direct or indirect use or reliance on such information.