COPPER extends recovery and is on track for the biggest weekly gains in more than one year
Extension of steep rally from $3.0250 (09 Feb low) resulted in break above double top at $3.2565/60 (25 Jan / 05 Feb highs) on Friday, signaling that bulls could extend towards key near-term barrier at $3.3200 (28 Dec peak / the highest since Jan 2014).
Copper rallied strongly last week, driven by significantly weaker dollar and bright demand outlook from China, metal’s largest consumer.
Fresh bullish signal comes from this week’s strong performance as the metal is on track for the biggest weekly gains in more than one year.
Firm bullish setup of daily / weekly studies continues to underpin, however, a breather on strongly overbought slow stochastic on daily chart and week-end profit taking could be anticipated.
Broken bear-trendline (drawn off $3.3200 high) marks solid support at $3.2280 and guards top of thick daily cloud at $3.1954, which is expected to contain deeper corrective dips.
Res: 3.2710; 3.2900; 3.3085; 3.3200
Sup: 3.2504; 3.2410; 3.2220; 3.2115