COPPER – extended bears tested critical support provided by daily cloud base
Copper extends steep pullback from $3.1750 high (double upside rejection) and tested key support at $3.0642 (daily cloud base).
Bears were so far unable to break below cloud base after Tuesday’s strong bearish acceleration surged into thick daily cloud (spanned between $3.0642 and $3.1151).
This is very significant support as the metal last traded below cloud in early June and since then the cloud was tracking ascend.
Firm break below cloud could spark stronger weakness and open way for test of initial target at $3.0305 (17 Nov trough), with 100SMA ($3.0049) and psychological $3.00 supports expected to come in focus.
Daily techs are coming into full bearish setup and support the notion.
However, bears may show stronger hesitation at cloud base and enter extended consolidation before bears resume.
Converged 10/20SMA’s ($3.1049) should keep the upside protected, guarding the upper pivot at $3.1151 (daily cloud top).
Res: 3.0857; 3.1049; 3.1151; 3.1330
Sup: 3.0642; 3.0485; 3.0305; 3.0049