FxWirePro: Copper extends weakness for 4th straight session, break below daily cloud to see further weakness

• Copper extends weakness for 4th straight session, extends grind along cloud base. 
   
• Upside is capped below 5-DMA, which is immediate resistance at 3.074. 
   
• Copper is being dragged lower along with the larger commodity space as USD dollar strength weighs.
   
• The pair had been struggling to get past 50-DMA resistance which currently hovers at 3.084.
   
• Price has retraced from highs of 3.090 and is currently at 3.062, down 0.1% on the day.
   
• Technical studies are bearish, scope for test of trendline support at 3.00 which is also 38.2% Fib.
   
• Violation there could see further downside which opens up downside till next support at 2.95.
   
• On the flipside, we see 50-DMA as strong resistance and any upside only on decisive break above.

Support levels - 3.00 (trendline & 38.2% Fib), 2.950(trendline), 2.895 (50% Fib)

Resistance levels - 3.074 (5-DMA), 3.084 (50-DMA), 3.102 (cloud top)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-Copper-capped-below-50-DMA-further-weakness-on-charts-stay-short-on-rallies-1297573) is progressing well.

Recommendation: Stay short.

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