COPPER – bears may consolidate before eventual break below 200SMA; targets at $3.00 zone in focus
Copper fell further on Wednesday and hit new three-month low at $3.0145, on probe through strong support at $3.0259 (200SMA).
The metal extended steep descend in past four days, being under pressure on expectations on US rate hike and concerns about potential trade war which reduced demand for industrial metals.
Bearish tech favor further weakness which needs confirmation on firm break below rising 200SMA for test of psychological $3.00 support and $2.9961 (Fibo 38.2% of larger $2.4720/$3.3200 bull-phase) violation of which would open way towards top of rising weekly cloud ($2.9250).
Meanwhile, bears may show hesitation at 200SMA (daily slow stochastic turned sideways in deep oversold territory).
Stronger upticks are expected to find solid resistance from falling 10SMA at $3.10 (previous strong support).
Res: 3.0540; 3.0816; 3.1000; 3.1232
Sup: 3.0259; 3.0145; 3.0000; 2.9961