COPPER – step ascend hits new four-month high
Copper holds in strong bullish mode for the fourth straight day and probes above yesterday’s new four-month high at $3.2485, following shallow corrective pullback to $3.1920 today.
Weaker dollar, solid global economic growth, which suggests stronger demand for the metal and concerns about possible supply disruption in Chile, keep the metal’s price well supported.
Copper has registered gains of over 6% since rally commenced last Friday and retraced over 76.4% of $3.3200/$2.9370 Dec/Mar descend.
Strong rally could extend to $3.2710 (16 Feb high) as bullish momentum continues to strengthen and MA’s in bullish setup added to positive structure on formation of 10/200SMA Golden cross today.
Strongly overbought slow stochastic and daily RSI entering overbought territory warn of corrective pullback in the near-term, but so far without any firmer signal.
Steep uptrend sees dips on profit-taking and overextended techs as better opportunities to re-enter market.
Solid supports lay at psychological $3.20 level $3.1935/20 (former high of 19 Apr / today’s low), with deeper pullback to extend to $3.16 zone.
Res: 3.2545; 3.2710; 3.2900; 3.3000
Sup: 3.2110; 3.2000; 3.1920; 3.1600