Copper takes a tumble, but are there more losses to come?

Copper prices have suffered their worst day of 2017. IGTV’s Jeremy Naylor looks at the charts and the trading opportunities this may present.

Tuesday’s move in the price of high grade copper has taken it outside the Bollinger band. But with moving average convergence divergence (MACD) pointing lower, and the relative strength index (RSI) only flirting with being oversold, IGTV’s Jeremy Naylor suggests that a little bit of the air needs to come out of the short trade before we see a resumption of the recent drop. Something that would arrest the drop would be support at 28,225, however, that is some distance from current price action at 29,000.


If 28,927 is broken on a daily basis, the 200-day simple moving average (SMA) would offer further support at 28,566, and then there’s a further level of support at 28,225. That was the level of resistance back in February this year.

Jeremy also explains where to place a stop on a short trade, which would provide safety if the price snaps back.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.