COPPER – rising daily cloud underpins recovery but limited upside seen so far
Copper price bounced on Monday as dollar’s bulls are taking a breather after accelerating on upbeat US data on Friday.
Friday’s action ended in red but strong rejections were seen on both sides. Upside attempts stalled at $3.1640 with subsequent bearish acceleration being rejected at $3.1638 (Fibo 61.8% of $3.1065/$3.2565 rally.
The downside is also protected by rising and thickening daily cloud which offers significant support.
However, recovery was so far limited and capped by 20SMA ($3.2034), with sustained break higher needed to signal stronger advance towards 30SMA ($3.2238) and Friday’s spike high at $3.2430.
Daily cloud top offers strong support at $3.1732), violation of which would generate negative signal for retest of Fibo support at $3.1638 and possible further retracement of $3.1065/$3.2565 rally.
No clear signals from daily techs as MA’s are in mixed mode, RSI and slow stochastic moving sideways in neutrality zone while momentum studies are negatively aligned.
Res: 3.2034; 3.2238; 3.2430; 3.2565
Sup: 3.1732; 3.1690; 3.1638; 3.1510