- Copper extends slump for 3rd consecutive week, trades 1.12% lower on the day.
- Price action has breached 50-DMA support at 2.939, scope for further downside.
- Bears eye 38.2% Fib retracement of 2.472 to 3.176 rally at 2.907, stay short. Next major support below 38.2% Fibo lies at 100-DMA at 1.766.
- RSI and Stochs have shown a rollover from overbought levels on the weekly charts, confirming further downside.
- We see bearish invalidation only on close above 20-DMA at 3.045.
Support levels - 2.907 (38.2% Fib retracement of 2.472 to 3.176 rally), 2.839 (July 28 low), 2.766 (100-DMA)
Resistance levels - 2.939 (50-DMA), 2.956 (5-DMA), 3.010 (23.6% Fib)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Copper-extends-correction-from-multi-year-highs-at-3176-breaks-20-DMA-support-bias-lower-897308) is approaching TP1.
Recommendation: Bias lower, stay short.
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