Copper extends steep ascend into sixth straight day
Copper future contract for December delivery continues to trend higher and extends steep ascend into sixth straight day.
The rally was underpinned by rising and widening daily cloud and supported by weaker US dollar and showed no impact from negative signals on concerns over demand from China’ metal’s top consumer.
Fresh bullish extension on Friday eyes strong barrier at $3.1711 (Fibo 61.8% of $3.2580/$3.0305 descend, where bulls could show stronger hesitation.
The notion is supported by strongly overbought slow stochastic on daily chart, however, firm bullish setup of daily techs suggests limited downside.
Initial support lies at $3.1304 (30SMA) with extended dips to be contained by daily cloud top ($3.1087) and converging 20/10 SMA’s ($3.1057 / $3.1006) which are on track to form bullish cross and further support the advance.
Res: 3.1660; 3.1711; 3.1850; 3.2000
Sup: 3.1445; 3.1304; 3.1087; 3.1000