Jiangxi Copper (358-hk): Upside Break-through Awaited

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...

Uptrend 2

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.

Source: TradingView, Gain Capital

Build your confidence risk free

More from Stocks

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.