COPPER – repeated upside rejections are initial negative signs; close below Fibo support at 3.0955 needed to signal reversal
Copper price shows strong indecision on Wednesday, as repeated failures to break through falling thin daily cloud (3.1294/3.1575), shaped today’s action in long-legged Doji, signaling strong indecision, in addition to daily candles with long upper wicks of past two days.
Bearish divergence on 14-d momentum adds to negative signals building on daily chart.
Stronger negative signal could be expected on break and close below converged 10/55SMA’s (3.1100/3.1083) and Fibo 38.2% of 2.9370/3.1935 upleg at 3.0955.
On the other side, overall structure remains bullish and upside expected to remain in focus while 10/55SMA holds, with extended consolidation between 10/55SMA and daily cloud expected, before bulls resume.
Break and close above daily cloud would be signal of bullish continuation of the uptrend from 2.9370 (26 Mar low).
Res: 3.1391; 3.1575; 3.1660; 3.1935
Sup: 3.1155; 3.1083; 3.0955; 3.0827