Subscribe to RSS

Forex Technical Analysis #C-COPPER : 2016-01-27

China increases copper import

Copper prices rose significantly on Tuesday on positive data from China. The copper import in 2015 has hit a fresh all-time high of 3.68bn. which is 2.5% above the volume of 2014. Will the copper prices continue rising?

The demand for copper increased despite the slowdown of the Chinese economy year over year. The Chinese GDP added 6.8% in Q4 2015. The lower reading was only during the economic crises in Q1 2009 (+6.2%) and in Q4 1999 (+6.7%). China consumes 45% of the global copper production. Last year Copper prices fell 28% last year and another 14% in 2014 which is far above the fall in prices in course of the recent world crisis. From December 2007 to June 2009 copper lost 24%. Amid higher imports of the metal to China, the upward correction from the 7-year low hit 2 weeks ago may continue. In December 2015 the Chinese import increased 34.4% to 406.94 thousand tonnes compared to the same period of 2014. Since November 2015 in increased 18%. The next significant macroeconomic data will come out in China on February 1 – the manufacturing PMI and the Forex reserves for January.

Another driver of copper prices may be the Indonesia’s decision to oblige the US Freeport McMoRan to deposit $530 mln to secure further quotes on copper concentrate production. The funds shall guarantee the construction of the new copper smelting plant. Indonesia benefits more from the export of smelted copper than of the copper concentrate. Previous quotes terminate this Thursday. Freeport McMoRan made a preliminary agreement last July under which it will deposit only $80 mln. The negotiations on this matter may limit copper and its concentrate export from Indonesia.

Copper

On the daily chart Copper: D1 is correcting upwards within the downtrend. It has recently hit a fresh 7-year low. Now Parabolic indicator and MACD give buy signals. RSI has formed the positive divergence and is above 50. The Bollinger bands have widened a lot which means higher volatility. The bullish momentum may develop in case copper surpasses the resistance of the downtrend at 2.054. This level may serve the point of entry. The initial risk-limit may be placed below the 7-year low, the Parabolic signal and the last fractal low at 1.93. Having opened the pending order we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 1.93 without reaching the order at 2.054, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 2.054
Stop loss below 1.93

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

150% Chinese New Year Bonus Promotion – FXCL Markets

150% Chinese New Year Bonus Promotion – FXCL Markets(0)

150% Chinese New Year Bonus Promotion to all FXCL Markets clients. Deposit any amount to your trading account and Receives 150% Chinese New Year Bonus Promotion Link:  150% Chinese New Year Deposit Bonus Link:  100% Smart Deposit Bonus Link:  130% Youtube Deposit Bonus Available to: All clients. Bonus Offer: 150% Chinese New Year Deposit Bonus

Trading Cryptocurrency with Leverage 1:1000 – NordFX

Trading Cryptocurrency with Leverage 1:1000 – NordFX(0)

NordFX clients are enjoying the ability to Forex Trading the most popular cryptocurrencies Bitcoin, Litecoin and Ethereum using a 1:1000 leverage ratio Link:  Trading Crypto with Leverage 1:1000 Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Why should one trade with us? The trading is

Receive 55% Bonus on your Deposit Money – NordFX

Receive 55% Bonus on your Deposit Money – NordFX(0)

55% Deposit Bonus Promotion to All New and Existing Customers. 55% Bonus on Deposit Fund your account with $100 – $8,000 and receive a trading bonus up to $4,400! Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to:  All new and existing accounts Bonus offer: 

Up to 100% Bonus on your initial Deposit – FXtrade777

Up to 100% Bonus on your initial Deposit – FXtrade777(0)

Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. Get more for your money at FXtrade777 with an unforgettable Up to 100% Welcome Bonus. Link:  Up to 100% Bonus on your initial Deposit Bonus Offer: Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. FXtrade777

FIFA World Cup Football Matches Tournament – FBS

FIFA World Cup Football Matches Tournament – FBS(0)

FIFA World Cup Football Matches Tournament. Participate in the contest and win the visit to the biggest football tournament of the year in Russia. Link: FIFA World Cup Football Tournament Link:  Just Share a Greeting Card and Gifts Link:  $50 Free Will be credited to Your Account Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex

100% Withdrawable Deposit Bonus up to $5000 – NordFX

100% Withdrawable Deposit Bonus up to $5000 – NordFX(0)

100% Withdrawable Forex Deposit Bonus up to $5000. The 100% Withdrawable Deposit Bonus and the initial deposit can be withdrawn after the required number of lots is closed. Profits can be withdrawn without restrictions. Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to: All

50% First Deposit Bonus Prom – Hirose Financial UK

50% First Deposit Bonus Prom – Hirose Financial UK(0)

50% First Deposit Bonus Promo Maximum Bonus Amount is $1000 for all customers. The 50% Special Bonus offer for Hirose Financial UK customers who make a deposit to Binary Options account. They can withdraw deposit and profit at anytime!! Link:  50% Deposit Bonus Promotion Available to: All new traders Bonus Offer: 50% Special Bonus offer

200% Pending Bonus for your Next Deposits – CTTrade

200% Pending Bonus for your Next Deposits – CTTrade(0)

200% Pending Bonus for the Next Deposits. Just make the re-deposit and during the day we will credit your 200% Pending Bonus. Link:  200% Pending Bonus for the Next Deposits Available to: All new account How to get Pending Bonus? Just make the re-deposit and during the day we will credit your bonus. This bonus

Free SERENITY Tokens New Year Promotion – Grand Capital

Free SERENITY Tokens New Year Promotion – Grand Capital(0)

Receive free SERENITY tokens for Forex, futures and cryptocurrency trading. The promotions is supported by SERENITY. The objective is to promote and brand the platform as a secure trading solution for trader Link:  Receive free SERENITY tokens for trading Link:  $500 Forex No Deposit Welcome Bonus Link:  Up to 444% Profit Receive for a single

$500 Chinese New Year Welcome Cash Bonus – ForexTime

$500 Chinese New Year Welcome Cash Bonus – ForexTime(0)

500 USD Chinese New Year with Cash Bonus Giveaway Promotion. Blessings for the Chinese New Year from ForexTime Get up to $500 Cash Bonus Giveaway Promotion. FXTM Link:  $500 Welcome Cash Bonus Promo Link:  Start Copy Trading your Perfect Partner Link:  $25 Per Referral Earn up to $10000 Link:  Receive $30 Tradeable Credit Free Bonus

read more

Forex Featured BrokerSocial Trading

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories