Copper – recovery from 3.1758 footstep lacks momentum
Copper price rose on Thursday, boosted by strong Chinese IP data and better than expected Q4 GDP numbers.
The metal bounced from strong support at $3.1758 (Fibo 38.2% of $2.9425/$3.3200 upleg) reinforced by rising 30SMA, where corrective leg from $3.3200 peak found footstep.
No clear signal for near-term direction as daily studies are mixed (RSI is moving sideways in neutral 50 zone; momentum remains negative; slow stochastic approaching oversold territory; MACD is descending but holding well above the midline).
Falling 10SMA marks initial resistance at $3.2229 with break here needed for initial bullish signal and extension above 20SMA ($3.2411) to confirm reversal and signal higher low.
Near-term price action remains capped by thick hourly cloud (spanned between $3.2020 and $3.2363) and the downside would remain at risk while cloud limits recovery attempts.
Bearish scenario requires sustained break below $3.1758 pivot to signal continuation of bear-leg from $3.3200 towards supports at $3.1397 (55SMA) and $3.1046 (100SMA).
Res: 3.2020; 3.2145; 3.2229; 3.2363
Sup: 3.1825; 3.1758; 3.1597; 3.1396