COPPER extends rally into eight consecutive day; bulls look for break above daily cloud top
Copper trades in uninterrupted rally which extends to eight straight day and trading deeply in daily cloud, which was penetrated on Friday’s fresh bullish extension.
Bulls are looking for final push towards key barriers at $3.1245/69 (01 Dec high / daily cloud top), break of which is expected to generate another strong bullish signal for extension of recovery leg from $2.9425 (05 Dec low).
Today acceleration cracked barrier at $3.0990 (high of 05 Dec when the metal fell sharply, losing 4.4% in one day) and fully retraced $3.0990/$2.9425 fall.
Daily techs are turning into full bullish mode and supportive for further advance as bullish sentiment is maintained by weaker dollar and firm industrial activity in China, metal’s top consumer.
Strongly overbought slow stochastic on daily chart so far showed no impact on price which continues to rally despite expectations for end of week profit-taking.
Broken daily cloud base now acts as solid support.
Res: 3.1245; 3.1269; 3.1348; 3.1715
Sup: 3.0862; 3.0755; 3.0649; 3.0550