COPPER – recovery gains traction and tests key barriers
Copper moved higher on Thursday and probes above past-three days congestion, cracking pivotal barriers at 3.0239/82 (Fibo 38.2% of $3.1645/$2.9370 fall / falling 10SMA).
The metal received support from easing fears of trade war which kept the price under pressure since President Trump announced that the US would impose tariffs on imported goods from China.
Bear-leg from 15 Mar high at $3.1645 (part of broader weakness from 28 Dec 3.3200 peak) found footstep just above strong support a $2.9241, provided by top of rising weekly cloud which tracks the uptrend since May 2017.
Stronger bullish signal could be expected on firm break above falling 10SMA, which would spark recovery extension towards strong barriers at $3.0750/77 (broken neckline of asymmetric Head and Shoulders pattern on weekly chart / Fibo 61.8% of $3.1645/$2.9370 descend).
Caution on possible recovery stall as momentum studies remain firmly bearish on daily chart, conflicting positive signals from other indicators
Res: 3.0285; 3.0389; 3.0540; 3.0775
Sup: 3.0000; 2.9935; 2.9675; 2.9370