COPPER bounces from 2-mth low on Monday; Chinese Lunar New Year in focus
Copper edged higher on Monday, bouncing from two-month low at $3.0250, posted on Friday, in extension of steep three-day fall.
Weaker dollar and oversold daily techs helped the metal, but recovery was limited for now, as traders remain cautious about demand after Lunar New Year holiday in China which starts this week.
Outlook for demand from China, metal’s biggest consumer, is positive for 2018 and could further boost Copper’s price which is currently trading in corrective phase from new high at $3.3200 (the highest since Jan 2014).
Recovery attempts on Monday are supported by north-turning daily indicators and look for sustained break above cracked barrier at $3.0867 (broken Fibo 61.8% of $2.9425/$3.3200 ascend) to open way towards more significant barriers at $3.1249 (100SMA) and $3.1312 (daily cloud base), regain of which would generate stronger bullish signal.
Cracked Fibo 76.4% of $2.9425/$3.3200 offers support at $3.0316, guarding psychological $3.0000 support, loss of which would risk test of key s/t supports at $3.9462/25 (200SMA / 05 Dec low).
Res: 3.0867; 3.0955; 3.1249; 3.1312
Sup: 3.0415; 3.0316; 3.0000; 2.9625