- Copper extends break below 50-DMA at 3.0804, slips lower on the day extending downside for 3rd consecutive session.
- Price action has broken below strong trendline support at 3.055 and bias still bearish.
- Technical indicators are turning bearish. Stochs and RSI are biased lower.
- 100-DMA at 3.007 is next bear target, violation there could see further downside.
- Retrace above 50-DMA at 3.0816 invalidates bearish bias.
Support levels - 3.030 (Nov 17 low), 3.007 (100-DMA), 2.958 (38.2% Fib retrace of 2.472 to 3.258 rally)
Resistance levels - 3.055 (trendline), 3.073 (23.6% Fib), 3.081 (50-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-Copper-breaks-20-DMA-support-bias-lower-good-to-short-rallies-1028799) has hit TP1/2.
Recommendation: Bias lower. Book partial profits, trail stop loss to 3.085, hold for 3.030/ 3.010/ 3.0.
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