COPPER – bearish alignment while daily cloud and a cluster of MA’s cap
Copper holds in red on Thursday after positive China’s manufacturing data pushed price higher but gains were short-lived as report showed copper inventories rose.
Choppy trading in past four days resulted in daily candles with long shadows, signaling no clear direction.
This week’s action remains capped by daily Ichimoku cloud which maintains pressure despite being thin and is narrowing in coming days.
In addition, a plethora of converged daily MA’s in bearish configuration and weakening momentum, keeps bearish near-term stance intact.
However, downside attempts were so far limited and facing strong headwinds from rising weekly cloud (top of cloud lays at $2.9977).
Dips were also unable to close below pivotal Fibo support at $3.0350 (Fibo 61.8% of $2.9370/$3.1935) despite several probes below.
Eventual break here would generate bearish signal for attack at weekly cloud top and signal bearish continuation on break.
A cluster of daily MA’s between $3.0740 and $3.0840 marks strong resistance zone, which guards daily cloud (spanned between $3.0917 and $3.1040
Res: 3.0740; 3.0840; 3.0917; 3.1040
Sup: 3.0450; 3.0350; 3.0085; 2.9977