China's Manufacturing and Services Sectors Enter Contraction in July

The contraction in China's manufacturing and services sectors could heighten concerns over copper demand and exert downward pressure on prices in the short term. Technically, the RSI stands at 59, indicating a neutral stance, while the MACD remains below its signal line, suggesting weakening momentum. Although the price is attempting to hold above the SMA20, the negative news flow raises the possibility of a pullback toward the 6.45-6.48 support zone. However, any decline is expected to be limited, as the broader trend remains upward and the price is trading above the SMA50.

China's manufacturing and services sectors remain in contraction territory, which could heighten concerns over aluminum demand. Technical indicators also present a weak outlook, with prices trading below both the 20-day and 50-day moving averages and the MACD in negative territory. The RSI at 45, below neutral, suggests that selling pressure may persist. In the short term, downward movement is likely to continue, but since the asset is not in oversold territory, the decline is expected to remain limited.

The contraction in China's manufacturing and services sectors is a negative signal for commodity stocks such as BHP. This suggests that demand from China may weaken, potentially pressuring prices of commodities like iron ore. While technical indicators show some short-term momentum, with the RSI at 63 and a positive MACD, the news flow could overshadow this positive outlook. After a 3.4% gain in the last 24 hours, profit-taking may occur. Therefore, the likelihood of a downward correction in the short term is increasing.

With China's manufacturing and services sectors in contraction territory, demand for mining companies such as RIO may weaken. This could put pressure on commodity prices and negatively impact the stock. Technically, the RSI at 71 indicates overbought conditions, increasing the likelihood of a short-term correction. The MACD is positive but shows slowing momentum, raising doubts about the sustainability of the rally. Following a strong rise in the last 24 hours, profit-taking may be expected in the short term due to the news flow and overbought conditions.