- Copper is extending break below 50-DMA, slips below 2.90 handle.
- Cloud is strong support on the downside at 2.8722, break below will see further weakness.
- Downside continues for 3rd consecutive week, copper trades 1.13% lower on the day.
- Price action has breached 38.2% Fib retracement of 2.472 to 3.176 rally at 2.907, stay short.
- We see scope for further downside, next bear target lies at 2.8722 (cloud top) ahead of 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 3.0392.
Support levels - 2.8722 (cloud top), 2.839 (July 28 low), 2.766 (100-DMA)
Resistance levels - 2.9435 (50-DMA), 2.9477 (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) has hit TP1&2.
Recommendation: Book partial profits. Bias lower, stay short.
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