COPPER – strong rally signals an end of correction
Copper rallied strongly on Monday and broke above four-day congestion, signaling that corrective phase from new high at $3.3200 may be over.
The metal received fresh support from weakening dollar which came under increased pressure on Monday and spiked to $3.2900 so far, near Fibo 76.4% of $3.3200/$3.2065 pullback.
Today’s close above cracked $3.2766 barrier (Fibo 61.8%) is needed to confirm reversal.
Bullish daily techs returned to full bullish setup and started gaining fresh bullish momentum, signaling further recovery for full retracement of corrective leg from $3.3200 peak.
Broken thick 4-hr cloud ($3.2695/$3.2481) marks strong support zone, reinforced by 10SMA at $3.2425, which is expected to contain dips.
Res: 3.2900; 3.2932; 3.2970; 3.3085
Sup: 3.2695; 3.2525; 3.2481; 3.2425