FxWirePro: Copper slumps over 4%, base metal prices crash amid continued profit booking
COPPER chart - Trading View
LME Copper and rest of the base metal prices crashed on Thursday amid continued profit booking and U.S. dollar strength.
Copper spot prices fell over 4% to hit 9-day lows at 3.929 before recovering slightly to trade at 3.967 at around 09:55 GMT.
Caution seen ahead of this week's annual Chinese parliament meeting at which China will announce goals for 2021 as well as its next five-year plan for economic development.
Focus also on Federal Reserve Chair Jerome Powell, who is due to speak at a Wall Street Journal conference at 12:05 p.m. EST (1705 GMT).
Investors await to see if Powell would address concerns about a rapid rise in long-term borrowing costs after many Fed officials have downplayed the rise in Treasury yields in recent days.
Technical analysis shows copper near-term bias has turned bearish. Price action is below 200-H MA. Shooting Star on previous week's candle dents upside.
Oscillators have rolled over from overbought levels and are biased lower. 5-DMA has turned. Price action hovers around 21-EMA.
Watch out for decisive break below 21-EMA for test OF 23.6% Fib retracement at 3.798 ahead of 50-DMA at 3.740.