- Cloud weighs heavily on the upside in copper charts, price struggles to extend gains above 2.60.
- The pair has shown a decisive breakout above 20-DMA and downside supported at that leveks on the day.
- We see weakness only on break below 20-DMA, scope then for test of 2.484 (May 18 low).
- 200-DMA at 2.4692 is strong support on the downside, we see near-term reversal in trend only on break below.
- China's net refined copper and contained copper imports dropped 26 & 20 percent respectively, m/m in April.
- Data suggests copper market of China is indicating evident signs of deceleration.
Support levels - 2.5545 (20-DMA), 2.484 (May 18 low), 2.4692 (200-DMA)
Resistance levels - 2.5789 (5-DMA), 2.5903 (50-DMA), 2.6085 (Cloud base)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Copper-struggles-at-20-DMA-good-to-go-long-on-break-above-712683) has hit TP1.
Recommendation: Book partial profits at highs. Raise trailing stops to 2.550. Hold for upside.
