Key Moments
- LME Copper has stalled near the 13,400 resistance level, according to Société Générale’s FX analysts.
- The daily MACD has slipped below its trigger line after reaching multi-year highs, pointing to waning bullish momentum.
- Analysts see scope for short-term consolidation between the recent pivot low near 12,300 and 13,400. A break above 13,400 is needed to confirm the next up-leg.
Technical Resistance Caps Recent Copper Gains
Société Générale’s FX analysts say LME Copper has hit strong resistance around 13,400. As a result, the latest rally has stalled. This level has proven difficult to clear, which has limited further upside.
Momentum Indicators Point to Fading Upside
The analysts also note that the daily MACD, after reaching multi-year highs, has turned lower. In other words, momentum is fading. Therefore, the market may need a pause before it can resume its uptrend.
Consolidation Range and Upside Trigger Levels
Copper is trading close to a steeper ascending trend line. As a result, the FX team sees room for near-term consolidation within the recent trading band. Specifically, the range runs from about 12,300 to 13,400.
However, a decisive break above 13,400 would signal that the next leg of the uptrend has begun. Until then, the market may remain sideways.
Key Technical Levels
| Level | Significance |
|---|---|
| 12,300 | Recent pivot low and lower bound of the consolidation range |
| 13,400 | Strong resistance level and upper bound of the consolidation range; a break above it would signal the next uptrend phase |
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