- 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 3.086.
- Price has retraced from highs of 3.090 and is currently at 3.040, down 1.02% 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 - 3.070 (5-DMA), 3.086 (50-DMA), 3.092 (20-DMA)
Recommendation: Good to go short on rallies around 3.055/65, SL: 3.090, TP: 3.00/ 2.950/ 2.895
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