FxWirePro: Copper bounces off cloud support, scope for upside resumption

COPPER chart - Trading View 

Copper spikes over 1.10% on the day and was trading at 4.055 at around 04:50 GMT.

Copper prices buoyed after US President Biden announced a $2 trillion infrastructure plan to boost the economy. 

The eight-year plan aims to rebuild America's ageing infrastructure, promote electric vehicles and clean energy, and create employment opportunities.

From a technical perspective, pullback from record highs at 4.364 has found support at daily cloud.

RSI and 5-DMA have turned, raising scope for upside resumption. Major trend as evidenced by GMMA is bullish.

Price action has broken above 21-EMA and 200H MA and is set to test next immediate resistance at 5W MA at 4.078.

Momentum is bullish, volatility is high and rising, the pair is on a path of little resistance, break above 5W MA will raise scope for retest of 4.364. 

21-EMA has now turned support at 4.033, break below will see weakness. Bullish invalidation only below 55-EMA at 3.918.