With all the rhetoric between China-U.S. trade talks, it seems the market has been indecisive of what direction it wants to take since mid August, with prices staying in a range from a high of 2.7455 to a low of 2.5520. On Thursday, Beijing, being the world’s largest commodity consumer, announced it would welcome the opportunity to renew trade talks with the U.S. This may lend some support for copper and other metals, as we have recently broken a downward trendline with a strong rally on Wednesday. If prices hold up above the 2.66 area, it may be a good level to bounce from. Also, with Thursday’s close of 2.6765, we have support at 2.62 and expect a move towards 2.74-2.75 level which is where we have resistance on this bullish bias in the near to medium term.
Copper Dec ’18 Daily Chart