Copper futures for March experienced a near 1% rise, reaching $3.7823 and regaining much of the year’s losses. This upward movement is in line with the broader surge in Chinese financial markets, spurred by reports of Beijing contemplating a substantial $278 billion (2 trillion yuan) support package for its mainland stocks.

This development has fueled optimism about sustained copper demand in China, countering the economic slowdown that previously dampened copper prices. The market’s focus now shifts to the upcoming U.S. GDP data and the Federal Reserve’s inflation measures.

Expectations of cooling growth could influence the Fed’s decision to maintain high rates, which have historically impacted gold more adversely than copper. The anticipation of continued high interest rates, suggested by the upcoming PCE price index data, adds to the cautious market sentiment.

Copper Technical Outlook

As of January 24, copper is experiencing a marginal downtrend, trading at $3.8144, a 0.14% decrease from the previous day. The metal is now oscillating around critical price levels, with a pivot point established at $3.81. Resistance levels are identified incrementally at $3.83, $3.87, and $3.90, each serving as potential hurdles for upward price movement.

On the lower side, support levels are positioned at $3.76, $3.73, and $3.70, providing buffers against a downward trend. Notably, the 50-Day Exponential Moving Average (EMA) is at $3.79, and the 200-Day EMA aligns closely with the pivot point at $3.81. This proximity of EMAs around the pivot point suggests a balanced market sentiment.

The current chart pattern reveals an upward channel, indicating a supportive environment for a buying trend in copper, particularly around the $3.79 mark. Given these technical observations, the overall trend for copper appears bullish above the $3.80 threshold.

If prices sustain above this level, it could indicate continued upward momentum. In the short term, copper is expected to challenge its immediate resistance levels. A successful breach of these levels might confirm the bullish outlook, while failure to do so could lead to a reassessment of the current market trend.