COPPER – thick daily cloud and bearish techs weigh, but firmer direction signals are needed
Copper holds in direction mode on Tuesday, with price action shaped in long-legged Doji and capped by thick daily cloud after Monday’s fall broke and closed below cloud base.
Daily cloud continues to weigh, along with negative daily studies which show MA’s in bearish configuration and bearish momentum building.
Repeated close below daily cloud is needed to confirm bearish stance and signal renewed attacks at $3.10/$3.0950 support zone which guards key support at $3.0540 (09 Mar low).
Cloud base mark initial resistance at $3.1312, while sideways-moving 100SMA ($3.1509) marks next pivotal barrier.
Metal price is looking for performance of the US dollar which would give fresh direction signals on release of US inflation data today.
Res: 3.1312; 3.1460; 3.1509; 3.1612
Sup: 3.1000; 3.0950; 3.0695; 3.0540