COPPER – bullish sentiment but daily cloud top caps
Copper holds positive tone at the beginning of the week as manufacturing demand from China, metal’s top consumer, offset immediate negative impact on stronger dollar.
However, today’s fresh attempts higher failed again to break above cloud top ($3.1162) which also capped Friday’s rally, keeping the price within daily cloud ($3.0755/$3.1162).
Signals from daily studies are mixed, but bullish momentum is building and suggesting fresh probes through cloud top, for extension of recovery leg from $3.0315 (29 Nov low).
Break and close above daily cloud top as well as $3.1199 (Fibo 61.8% of $3.1745/$3.0315 downleg) would provide strong bearish signal for recovery continuation.
The downside is expected to remain vulnerable while the price stays capped by cloud top, with stronger downside pressure expected towards the end of the year, as trader will be taking profits from broader uptrend.
Res: 3.1106; 3.1162; 3.1245; 3.1408
Sup: 3.0925; 3.0784; 3.0755; 3.0505