COPPER – recovery rally shows signs of hesitation at strong barriers at $3.0120/88
Four-day rally is taking a breather on Tuesday, holding within narrow consolidation under fresh recovery high at $3.0175, posted on Monday.
Falling 10SMA approaches (currently at $3.0188) and weighs on near-term action, as bearish setup of daily studies warns of limited correction before bears resume.
Pivotal barrier at $3.0120 (Fibo 38.2% of $3.1245/$2.9425 downleg), was cracked but without firm break higher that keeps the downside at risk.
However, extended recovery cannot be ruled out with fresh upside extension to be capped by sideways-moving daily Tenkan-sen ($3.0335) and keep broader bears intact.
Otherwise, break here would sideline existing downside risk and open way for stronger recovery towards next pivots at $3.0587 (daily Kijun-sen) and $3.0755 (daily cloud base).
Res: 3.0120; 3.0188; 3.0335; 3.0587
Sup: 2.9995; 2.9888; 2.9737; 2.9585