COPPER – repeated recovery rejections keeps the downside vulnerable
Copper price is struggling to hold recovery as repeated upside rejection occurred today ($3.1975) after Friday’ long-legged Doji signaled that weakness from last week’s high at $3.2565 might be running out of steam.
Long bullish candle that was left on Wednesday after the biggest one-day rally since 16 Oct, formed bullish outside day pattern which continues to underpin, along with rising and widening daily cloud, but upside attempts so far stay under cracked pivotal barrier at $3.2384 (Fibo 61.8% of $3.3200/$3.1065 downleg).
The downside is expected to remain vulnerable while the latter stays intact, with risk of retesting Friday’s low ($3.1840) and further retracement of $3.1065/$3.2565 upleg on break lower.
Daily MA’s are in mixed setup; RSI is neutral, while momentum studies remain negatively aligned and not showing clear near-term direction.
Fresh bearish signal could be expected on firm break below Friday’s low ($3.1840) while sustained lift above Fibo barrier at $3.2384 will be bullish signal.
Res: 3.2132; 3.2384; 3.2565; 3.2696
Sup: 3.1932; 3.1840; 3.1638; 3.1419