Jiangxi Copper (358-hk): Upside Break-through Awaited
George Lam July 20, 2020 4:10 AM
Chinese major copper miner Jiangxi Copper (358-hk) is gathering more upside momentum as copper prices surged to the highest level in more than a year...
Copper prices have rallied to the highest level in more than a year in July. Chile's, the largest copper producer in the world, government agency Cochilco said the country's copper output is expected to drop 1.2%, or 69,400 tons, this year.
Citigroup pointed out that the base metal is recovering from the depths of the demand shocks that accompanied the Covid-19 pandemic, and expects a deficit in global copper market next year.
From a technical point of view, Chinese major copper miner Jiangxi Copper (358-hk) is gathering more upside momentum as shown on the daily chart. It has rebounded more than 50% from March's low and has broken above last year's low (which acted as a resistance). Bullish investors might consider $8.90 as the nearest support, while a break above the nearest resistance at $10.56 would open a path to the next resistance at $11.40. Alternatively, losing $8.90 would suggest a deeper price correction and may trigger a pull-back to the next support at $8.44.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.