COPPER – recovery attempts face strong headwinds from 10SMA barrier
Copper extends recovery from two-week low at $3.2115 on Thursday, as softer dollar and positive fundamentals support the metal’s price.
Recovery action today stays capped by the base of 4-hr cloud which is narrowing and twists tomorrow at $3.2570. This may attract for further recovery on sustained break above initial barriers at $3.2529/47 (Fibo 38.2% of $3.3200/$3.2115 pullback / 10SMA).
Prevailing bullish tone on daily studies keeps bulls in play for further recovery, with the action being underpinned by daily slow stochastic emerging from oversold territory.
However, repeated strong upside rejections on Wed/Tue weigh and the downside would remain vulnerable on another failure to clearly break above 10SMA pivot.
Bearish scenario sees negative signal on violation of strong supports at $3.2154/15 (rising 20SMA / correction low) which could signal fresh extension of corrective leg from $3.3200 peak.
Res: 3.2547; 3.2730; 3.2786; 3.2970
Sup: 3.2320; 3.2154; 3.2115; 3.2000