COPPER – correction is pausing but downside risk remains
Bears are taking a breather after pullback from new high at $3.3200 found footstep at $3.2200 zone and price bounced higher on weaker dollar on Tuesday.
Bullish Doji reversal pattern is forming on daily chart but requires strong bullish close today to complete the pattern and signal recovery.
Oversold daily slow stochastic support the notion.
However, recovery attempts were limited under broken 10SMA at $3.2644 (upper pivot) and signaled bulls may be running out of steam.
Bullish scenario requires close above 10SMA to sideline downside risk, otherwise the downside would remain vulnerable.
Firm break below $3.2200 would then risk extension towards rising 20SMA ($3.1942) and Fibo 38.2% of $2.9425/$3.3200 upleg ($3.1758).
Res: 3.2575; 3.2643; 3.2970; 3.3085
Sup: 3.2200; 3.1942; 3.1758; 3.1682