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

More from Stocks

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.