Home Forex Markets Risk aversion has not completely subsided, and international oil prices may still drive copper prices to highs

Risk aversion has not completely subsided, and international oil prices may still drive copper prices to highs

by WOOWinvest
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避险情绪尚未完全消退,国际油价仍可能带动铜价创高


The news that Russia and Ukraine have contacted through diplomatic channels has greatly eased market sentiment, and the plunge in international oil prices has also affected commodities such as copper. However, there are still variables in the negotiations between the two countries. , there is still the possibility of hitting a high, and it is advisable to pay close attention to the trend of copper prices.

After the Fed’s rate hike landed, the market turned back to Russia-Ukraine negotiations

Crude oil prices fell in place, copper prices remained volatile

The Fed officially entered the rate hike cycle after raising interest rates by 25 basis points. Affected by the uncertainty caused by the situation in Russia and Ukraine, the Fed’s words were more moderate, and short-term risks have rebounded. Market focus once again turned back to the Russia-Ukraine negotiations.

Negotiations between Russia and Ukraine have made some progress, but there are still differences on key issues such as Crimea and ceasefire. There is a possibility of a comeback after falling back.

The trend of international oil prices can best represent the trend of sentiment. After the surge in oil prices, which gave back almost all of the gains since February 25, after this full correction, buying is regrouping, and both oil prices are now back above $100. It is expected that the bulls target may still point to the previous high, but need to pay attention to the news of the Russia-Ukraine negotiations and the progress of the Iran nuclear deal. If there is substantial progress in the Russia-Ukraine negotiations, it will be a major positive, and the rebound in oil prices may be frustrated and continue to compete for the 100 yuan mark; and the conclusion of the Iran nuclear deal will be the biggest short-term negative, and oil prices may fall below 100 yuan again. 5% of the trades determine 75% of the profits, constructing high-quality trading decisions is worth studying!

Thanks to the strong rebound in oil prices, the short-term performance of copper prices is acceptable. It is advisable to continue to pay attention to the trend of oil prices. Once there is a sharp rise, copper prices may follow the record high again, and the key resistance above is 4.80-5.00.

The 2.00 trend line shows that the upward trend of copper prices has not changed, and the 4.50 line is the key support. After consolidating the trend in the early stage, pay attention to the breakthrough of copper prices to 4.80-5.00. If it effectively breaks through 5.00, the copper price is expected to further extend upwards, referring to the resistance of 5.30-5.50. If it falls below 4.50, it may break the current strength.

(Arthur)

Follow me on Twitter @ArthurZ22426704

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