COPPER falls strongly on Monday; key support at $3.0540 is under strong pressure
Copper price fell sharply on Monday, extending pullback from last week’s spike high at $3.1905, to nearly fully retrace $3.0540/$3.1905 recovery leg on dip to $3.0570 so far.
The metal maintained bearish bias from last Wednesday’s upside rejection and came under increased pressure on rising concerns that tensions between US and China could turn into trade war and could seriously affect demand.
In addition to negative fundamentals, technical studies are in firm bearish setup and maintain strong pressure.
Eventual break below $3.0540 pivot could spark fresh weakness towards next key supports at $3.0250/18 (09 Feb low / rising 200SMA), violation of which would expose psychological $3.00 support.
Meanwhile, bears may show stronger hesitation at key $3.0540 support, but limited upside action could be expected, with former support at $3.10 zone, expected to cap.
Res: 3.0862; 3.1000; 3.1140; 3.1207
Sup: 3.0570; 3.0540; 3.0415; 3.0250