COPPER closes within prior day's range
Copper (COPPER) Technical Analysis Report for Aug 19, 2019 | by Techniquant Editorial Team
COPPER ended Monday at 259.90 gaining $1.20 (0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (COPPER as at Aug 19, 2019):
Monday's trading range has been $3.70 (1.42%), that's slightly below the last trading month's daily average range of $4.23. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for COPPER. Prices continued to consolidate within a tight trading range between 257.45 and 262.60 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Gravestone Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on April 9th, COPPER lost -0.41% on the following trading day.
Prices are trading close to the key technical support level at 257.45 (S1). After having been unable to move lower than 258.50 in the prior session, the market found buyers again around the same price level today at 258.90.
Though the contract is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 264.15 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 257.45 where further sell stops could get triggered. With prices trading close to this year's low at 253.15, downside momentum might accelerate should COPPER break out to new lows for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Gravestone Doji" stand out. Its common bearish interpretation has been confirmed for Copper. Out of 32 times, COPPER closed lower 53.13% of the time on the next trading day after the market condition occurred.
With two out of the other two Metal Markets closing lower today, the ones that stand out on the negative side are SILVER losing -1.38% and GOLD closing -1.17% lower. None of the markets managed to end the day in the green. Read more