M2i Global Highlights Copper Supply Crunch with Australian Deal

The copper price has fallen 2.56% in the last 24 hours to 6.5063. Although the RSI at 33.9 is approaching oversold territory, it has not yet given a recovery signal. The MACD line remains below the signal line and in negative territory, indicating weak short-term momentum. Trading below the 20- and 50-day moving averages further darkens the technical outlook. While news headlines highlight a supply crisis, such warnings typically have a delayed impact on prices, and the current technical picture prioritizes downward pressure.

FCX shares have recorded a strong 6% gain in the last 24 hours, closing at $69.57. The RSI stands at 59.7, remaining in neutral territory without signaling overbought conditions, while the MACD is trading positively above its signal line. The stock is trading above its 20-day and 50-day moving averages, supporting a short-term bullish trend. News headlines highlight a copper supply crisis, which could boost demand for copper producers like FCX. However, given the pace of the rally and overall market conditions, while the likelihood of continued upward movement in the short term is high, there is also some risk of profit-taking.

While the news highlights a copper supply crisis, it does not include a direct demand increase or price catalyst for SCCO. Technical indicators present mixed signals: the RSI is neutral at 47, the MACD remains below the signal line, and the price is trading below the 20-day moving average. However, staying above the 50-day moving average provides medium-term support. In the short term, a stronger catalyst or volume increase should be awaited to determine a clear direction.

While the news highlights a copper supply crisis, Rio Tinto's diversified structure may limit its direct exposure. Technical indicators present mixed signals: RSI at 45 (neutral), MACD just below the signal line, and price trading below SMA20 but above SMA50. Given the lack of clear short-term direction, a neutral stance is recommended.