FundamentalOverview

Copper has been rallying steadily since the start of the month as themarket is looking forward to improving global growth in 2025. As a reminder,the Chinese Politburo announced last year that it will adopt a “moderatelyloose” strategy for monetary policy for 2025 and will seek a “more proactive”fiscal policy.

We have yet to see the Chinese officials to “walk the talk” but the marketis still hoping for stronger easing measures this year. The US manufacturingactivity has been picking up with the ISM Manufacturing PMI now almost backinto expansion. The global central bank easing generally leads to a pickup inactivity and it should be a tailwind for the copper market.

The focus remains on the Chinese economy and on Trump’s tariffs. A loosertariff policy will likely boost the market further as concerns around slowerglobal growth and negative impact on the Chinese economy should fade.Conversely, harsh policies will likely weigh on the risk sentiment and copperprices.

CopperTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that copper recently broke above both the major trendline and the key 4.31 resistance. The buyers just kept on increasingthe bullish bets on every break higher with the 4.70 level as the next target.The sellers, on the other hand, will want to see the price falling back belowthe 4.31 level to start targeting a drop back into the lows.

Copper TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have now a strong support zone around the 4.31 level where we canalso find the 38.2% Fibonacci retracement level for confluence. That’s where we can expect thebuyers to step in with a defined risk below the support to position for a rallyinto the 4.70 level next. The sellers, on the other hand, will look for a breaklower to pile in for new lows.

Copper TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we have a minor resistance zone around the 4.40 level. If the pricewere to pull back into the resistance, the sellers will likely step in there totarget a break below the 4.31 support, while the buyers will look for a breakhigher to increase the bullish bets into new highs. The red lines define the average daily range for today.

UpcomingCatalysts

This week is pretty empty on the data front with just a coupleof key releases scheduled for the latter part of the week. Today, we have theTrump’s Inauguration as the 47^th US President. On Thursday, we getthe latest US Jobless Claims figures, while on Friday we conclude with theFlash US PMIs.