- Copper has edged lower from fresh 3-month highs at 2.953 to currently trade around 2.920 levels.
- We have evidenced a 'Cup & Saucer' pattern on copper charts.
- The pair has broken strong resistance at 2.830 and is awaiting next leg higher after completing 'Cup & Saucer' pattern.
- Major resistance seen at 2.946, decisive break above will extend bullish trend.
- Technical indicators on weekly charts also support upside. RSI above 50 and biased higher. MACD also supports uptrend.
- Weekly 200-SMA at 2.6473 is strong support, break below could see bullish invalidation.
Support levels - 2.9168 (5-DMA), 2.8294 (20-DMA), 2.7053 (50-DMA)
Resistance levels - 2.946 (trendline), 3.0, 3.335 (61.8% Fib of 4.20 to 1.936 fall)
Recommendation: Watch out for decisive break above 2.946 to go long.
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